The Banking Executive Magazine - April 2022 Issue

Egyptian Banks’ 439.7bn. Other sectors, including non-residents, purchased checks, and remittances, amounted to EGP 15.4bn. On a different note, the CBE an- nounced an increase in credit facili- ties granted by banks during the period from July 2021 to January 2022, by about EGP 257.6bn, to reach about EGP 3.161trn in January 2022. The CBE attributed this rise to an in- crease of EGP 145.3bn in credit fa- cilities granted by non-government banks, at a rate of 8.1%, and credit facilities granted to the government by EGP 112.3bn, at a rate of 10.2%. The increase in credit facilities granted to the government came as a result of the increase in balances of foreign currencies, equivalent to EGP 91.6bn, and balances in local cur- rency by EGP 20.7bn. It added that according to the relative distribution of credit facilities for non-governmental organizations, the private business sector accounted for 60.4% of the credit facilities last Jan- uary. The industrial sector accounted for 28.2% of these facilities, followed by the services sector by 25.8%, then the trade sector by 11.2%, and the agriculture sector by 2.5%. The CBE revealed that the total loans provided to bank customers, in Jan- uary 2022, increased to EGP 3.095trn, compared to EGP 3.032trn in December 2021. The CBE explained that the volume of loans granted to the government amounted to EGP 1.170trn, of which EGP 794.1bn was in local currency, and the equivalent of EGP 376.6bn in foreign currencies. Total non-governmental loans in- creased to EGP 1.924trn, of which EGP 1.693trn was in local currency. It pointed out that the agricultural ac- tivity acquired loans worth EGP 44.3bn, the industrial activity about EGP 430.3bn, the commercial activ- ity EGP 201.09bn, and the services activity EGP 406.4bn. The loans of the rest of the undistributed sectors, which included the household sec- tor, individuals, and local bodies, as well as non-profit bodies and foreign bodies operating in Egypt, amounted to over EGP 611.2bn. The total foreign currency loans amounted to about EGP 230.9bn, as the agricultural sector acquired about EGP 3.5bn, the industrial sec- tor about EGP 110.7bn, the commer- cial sector about EGP 12.8bn, and the service sector about EGP 93.14bn. The rest of the undistrib- uted sectors, which included the household sector, individuals, local non-profit organizations and foreign bodies operating in Egypt, acquired about EGP 10.68bn. The CBE also said that the total vol- ume of banks’ securities portfolio, which represents investment in stocks, bonds and investment fund documents, increased to EGP 3.332tn at the end of January 2022, compared to EGP 3.324tn at the end of December 2021. The CBE ex- plained that the government sector acquired the largest proportion of the portfolio, accounting for EGP 3.162tn, the public business sector EGP 312bn, and the private business sector EGP 150.03bn, while the out- side world acquired EPG 19.295bn. It stressed that the local currency ac- counted for EGP 2.820trn of the port- folio’s value, of which the government sector accounted for about EGP 2.684tn, while the public and private business sector and the outside world acquired EGP 312bn. The foreign currency accounted for the remaining amount, amounting to EGP 511.9bn, which included EGP 47.7bn for the government sector. The private sector and the outside world account for EGP 19.286bn. The CBE announced an increase in the volume of domestic liquidity dur- ing the period from July 2021 to Jan- uary 2022 by EGP 520bn, or 9.7%, to reach about EGP 5.876trn in January. The CBE explained that the increase in local liquidity was reflected in the growth of quasi-money by EGP 394.6bn, at a rate of 9.6%, and the money supply by EGP 125.4bn, at a rate of 10%. It stated that this increase in quasi- money is the result of the increase in non-current deposits in local cur- rency by EGP 378.4bn, at a rate of 11%, and deposits in foreign curren- cies by EGP 16.2bn, at a rate of 2.5%. The increase in the money supply, came as a result of an increase in current deposits in local currency by about EGP 90.9bn, or 15.6%, and an increase in cash circulated outside the banking system by EGP 34.5bn, at a rate of 5.1%. It pointed out that the increase in do- mestic liquidity from July 2021 to January 2022 was the result of the rise in net domestic assets and the decline in net foreign assets of the banking system. The net domestic assets of the bank- ing system increased by EGP 762bn, or 14.9%, as a result of the increase in domestic credit by EGP 474.4bn, at a rate of 8.8%. The negative bal- ance of net budget items decreased by EGP 278.6bn. The CBE explained that domestic credit increased due to an increase in net liabilities from the government by EGP 311.9bn, and liabilities from the private business sector by EGP 104bn, and from the household sec- tor by EGP 65.8bn, and the decline in liabilities from the public business sector by EGP 7.3bn. The net foreign assets of the banking system decreased by EGP 242bn dur- ing that period, as a result of the de- cline in the net foreign assets of the banks by EGP 208.6bn, and the net foreign assets of CBE by EGP 33.4bn. ISSUE 160 APRIL 2022 the BANKING EXECUTIVE 25