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Private sector deposits grow to QR365.5bn

Private sector deposits grow to QR365.5bn

Bashir Al Kahlout, Economic Consultant and Director at Al Byraq Center for Economic and Financial Studies.

DOHA:  Qatar banks’ total liabilities declined in July 2019 by about QR 6.8bn from June to reach the level of QR1448.6bn, but still higher than it was a year ago by 4.4 percent, and 11.2 percent than it was after the siege in July 2017, Al Byraq Center for Economic and Financial Studies noted in its weekly analysis.

The balances of foreign banks with banks in Qatar grew steadily and reached in the level of QR237.4bn in July 2019, compared to QR211.5bn in July 2018, and QR179.9bn in July 2017. This reflects the great interest of foreign banks in the banking system Country, Bashir Al Kahlout, Economic Consultant and Director at Al Byraq Center for Economic and Financial Studies commented. The banks’ non-resident deposits grew to QR196.6bn in July 2019 from QR159.3bn a year ago.

Total resident deposits (Qatari and non-Qatari) fell to QR617.4bn from June’s QR627.5bn and QR654.2bn a year earlier. However, these deposits are still slightly higher than they were at the start of the blockade two years ago when it stood at QR615.3bn in July 2017.

Banks Capital Accounts is growing steadily due to the accumulation of bank profits year after year and reached the level of QR155bn in July 2019 compared to QR147.8bn two years ago.

The bank balances in Qatar although fell slightly in July from last June to the level of QR47.4bn, it is almost double the level of two years ago when it reached QR25.1bn in July 2017.

The balances with Qatar Central Bank balances rose at significant levels two years ago as a result of the Central Bank pumping funds to support liquidity with banks. It stood at QR39bn in July 2017, and then gradually declined to reach QR12.9bn in July 2019.

On the other hand, the total deposits of banks (inside and outside Qatar) remained stable in July 2019 with little change from July 2018 at QR814bn, but an increase of 5.4 percent from the level in July 2017.

Private sector deposits have grown over the past two years despite the blockade to the level of QR365.5bn compared to QR348.7bn in July 2017. Public sector deposits declined in July 2019 as a result of the government’s repayment of some of its debts to banks, and totaled to the level of QR251.3bn compared to QR291.6bn a year ago and QR266.6bn two years ago. Non-resident deposits increased to QR196.6bn from QR159.3bn a year ago and QR157.2bn in July 2017, reflecting the extent of foreigners’ confidence in the Qatari banking system.

Source: Peninsula