Banks’ financial position in Egypt stands at EGP 7.158 billion in January 2021: CBE


The Central Bank of Egypt (CBE) said the total financial position of banks operating in the Egyptian market stood at EGP 7.158 billion as of January 2021.

This compared to the EGP 7.022trn recorded in December 2020.

Bank capital stood at around EGP 174.774 billion in January 2021, while reserves stood at around EGP 327.6 billion, according to a report by the CBE.

In the same context, the CBE said net foreign assets increased by the equivalent of EGP 152.5 billion, an increase of 124.9%, during the period from July 2020 to January 2021. , to reach an equivalent of approximately 274.593 billion EGP.

The CBE explained that this increase was the result of an increase in net foreign assets in banks, equivalent to EGP 97.5 billion and net foreign assets with the CBE, equivalent to EGP 55 billion.

He pointed out that the local assets of the banking system increased during the same period by EGP 268.2 billion, or 6.1%. This is explained by the increase in domestic credit of EGP 231.5 billion at the rate of 4.8%, and the negative balance of net budget items decreased by EGP 36.7 billion at the rate of 8, 5%.

The CBE explained that domestic credit has increased due to the increase in net liabilities: from the private sector of EGP 81.9 billion; the household sector by EGP 75.3 billion; from the government by EGP 73.3 billion; and the public enterprise sector by EGP 1 billion.

On another note, the CBE reported that banking sector deposits recorded EGP 5.282 billion in January 2021, up from EGP 5.196 billion in December 2020.

Government deposits recorded EGP 920.440 billion in January 2021, while non-government deposits reached EGP 4.362 billion.

The CBE reported that the volume of credit facilities extended by banks operating in the local market to their customers reached around EGP 2.532 billion in January 2021.

He pointed out that the volume of these facilities increased by 332.1 billion EGP in seven months, with a growth rate of 15.1%.

Credit facilities refer to loans granted by banks to their customers, in addition to letters of credit and letters of guarantee opened to them to cover import transactions.

The CBE attributed the increase to an increase in the volume of credit facilities provided by banks to the state of EGP 188.6 billion, at a rate of 28%.

It is also driven by an increase in the volume of facilities granted to non-governmental entities by EGP 143.5 billion, at a rate of 9.4%.

The CBE explained that the increase in funds provided to non-governmental entities resulted from the increase in the volume of local currency facilities, worth EGP 180.5 billion, and the increase in foreign currency facilities. , equivalent to 8.1 billion EGP.

He also clarified that the private enterprise sector obtained about 59.1% of the total non-government credit facilities granted by banks to various economic sectors.

The CBE said the industrial sector received the most funding from banks, as it alone obtained around 30.7% of total facilities. It was followed by the services sector, which acquired 24.8% of financing, then the trade sector for 10.8%.

The agricultural sector obtained 2.1% of the volume of this equipment, while the share of other sectors, which the CBE did not detail, to which is added the household sector, amounted to around 31.6%. the volume of this equipment.

In the same context, the portfolio of securities and bank investments in treasury bills (T-bills) recorded EGP 2,683 billion in January 2021. This was compared to EGP 2,778 billion recorded in December 2020 .

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