The Central Bank of Egypt (CBE) has reported that the total financial position of banks operating in the Egyptian market, excluding the CBE, reached EGP 14.473trn by the end of August 2023, compared to EGP 14.150trn at the end of July 2023, reflecting an increase of EGP 323bn.
According to the CBE’s monthly report, the banks’ cash balances amounted to EGP 103.335bn by the end of August 2023. The banks’ domestic balances reached EGP 2.728trn, while their foreign balances amounted to EGP 309.469bn.
The report also stated that the banks’ lending and discount balances for customers recorded EGP 5.005trn. The securities and treasury bills portfolio of the banks amounted to EGP 4.763trn, while the other assets, not specified by the CBE, reached EGP 1.445628trn.
On the liability side, the CBE indicated that the banks’ capital amounted to EGP 359.266bn, with reserves of EGP 509.461bn, and provisions of EGP 318.457bn.
The banks’ domestic liabilities amounted to EGP 656.309bn, while their foreign liabilities reached EGP 444.937bn. The total deposits amounted to EGP 9.696trn, and the bonds and long-term loan balances reached EGP 546.236bn. The other liabilities, not detailed by the CBE, were EGP 1.942trn.
The CBE also revealed an increase in the local liquidity of the banking sector by EGP 219.3bn during July and August 2023, reaching EGP 8.467trn, with a growth rate of 2.7% compared to the end of June 2023.
The CBE explained that this increase was reflected in the growth of quasi-money by EGP 132.5bn, at a rate of 2.1%, and the money supply by EGP 86.8bn, at a rate of 4.2%.
The increase in quasi-money resulted from the rise in foreign currency deposits by the equivalent of EGP 53bn, at a rate of 3.5%. Non-current deposits in local currency increased by EGP 79.5bn, at a rate of 1.7%. The increase in the money supply came from the growth of current deposits in local currency by EGP 98.4bn, at a rate of 9.4%, and the decline of circulating cash outside the banking system by EGP 11.6bn, at a rate of 1.1%.
The CBE noted that the increase in local liquidity during July and August 2023 was the result of the rise in both the net local assets and the net foreign assets of the banking sector.
According to the CBE, the net local assets of the Egyptian banking sector increased by EGP 186bn, or 2%, during the same two months. This was the result of an increase in local credit by EGP 691.1bn, at a rate of 7.9%, and a decrease in the net budget items by EGP 505.1bn.
The CBE clarified that local credit increased due to an increase in net claims on the government by EGP 621.8bn, claims on the private sector by EGP 30.4bn, claims on the public sector by EGP 4.8bn, and claims on the household sector by EGP 34.1bn.
Moreover, the net foreign assets of the banking system also increased by EGP 33.3bn during July and August 2023. The CBE pointed out that this increase was due to the rise in the net foreign assets of banks by EGP 19bn and the increase in its net foreign assets by EGP 14.3bn.
The CBE also reported an increase in the reserve money by EGP 68.5bn, at a rate of 4.5%, during July and August 2023, reaching EGP 1.597trn.
The CBE explained that this increase was due to the rise in the banks’ local currency deposits at the CBE by EGP 90bn, at a rate of 20.2%, and the decrease in the cash circulation outside the CBE’s vaults by EGP 21.5bn, at a rate of 2%. The increase in reserve money was the result of the increase in net claims on the government by EGP 601.2bn, net claims on banks by EGP 26.5bn, and net foreign assets at the CBE by EGP 14.3bn, with a decrease in net budget items by EGP 573.5bn.