Slower banking growth

Assets at $141 billion, deposits total $116 billion

The year 2011 saw a healthy performance for the banking sector as revealed by deposits growing at around seven percent and credits rising by more than 14 percent, the Central Bank said.

In its overview of recent financial developments, the Central Bank said that while last year's activity was satisfactory, it was less favorable than that of 2010, which saw a ten percent growth in deposits and a 23 percent growth in credits.

Data released by the Central Bank showed that at the end of 2011 total assets of commercial banks reached around $141 billion, up from $129 billion at end-2010.

Private sector deposits in the banking sector totaled $116 billion at the end of 2011, compared to $107.7 billion at end-2010.

Local currency deposits reached $39.6 billion, almost unchanged from end-2010. Foreign currency deposits stood at $76 billion, up from $67 billion at end-2010. Non-resident foreign currency deposits amounted to $18.6 billion, up by 19.2 percent from end-2010. Deposits of non-resident banks reached $5.84 billion, up from $4.5 billion at end-2010.

The dollarization rate of deposits at end-2011 was 65.9 percent, up from 63.2 percent a year earlier. The average deposit rate in the local currency was 5.63 percent in December 2011, down from 5.68 percent in the previous year. The average deposit rate in dollars was 2.83 percent up from 2.8 percent in December 2010.

Loans to the private sector totaled $39.4 billion. Lending to the non-resident private sector reached $5.2 billion, up by 11.7 percent from end-2010. The average lending rate in lira was 7.38 percent in December 2011 compared to 7.91 percent a year earlier. the average lending rate in dollars was 7.02 percent compared to 6.74 percent in December 2010.

Claims on non-resident banks reached $14.6 billion at end-2011, down by 7.7 percent from the same period a year earlier. Claims on the public sector stood at $29.2 billion, almost unchanged year-on- year, and representing 42.6 percent of the banking sector's total claims.