Deposits up by eight percent

Salameh says nonperforming loans increased

The banking sector’s performance in 2012 was fairly unchanged from that of the previous year. “Profits of banks were similar to the profits witnessed in 2011 in light of higher provisions for credit risks,” said Riad Salameh, Governor of the Central Bank (BDL).

At end-2012 the overall assets of commercial banks stood at $152 billion, up by eight percent on a yearly basis. Private sector deposits grew by eight percent to $125 billion. Foreign currency deposits at banks reached $81 billion, up by six percent, while deposits in local currency rose by 11 percent to the equivalent of $44 billion. Deposits of non-residents grew by 13 percent to $24 billion. The dollarization rate of deposits reached 64.8 percent, down from 65.9 percent at end-2011.

Investment and consumption rates were affected by economic adversities, mainly spillovers from the war in Syria, Salameh said: “Growth began to recoil in May 2012 due to lower foreign demand (low tourism activity) in the local market.” He said nonperforming loans slightly increased in the second half of last year.

Loans to the private sector were up by ten percent to $43.5 billion. Lending to the resident private sector increased by 10.6 percent to $37.8 billion. Lending to the non-resident private sector rose by nine percent to $5.6 billion.

Salameh said the banking sector has taken enough measures to ensure financial stability through the year 2013.