Non-resident deposits in commercial banks exceed overall deposit growth in March: QCB


Qatar’s banking system saw non-resident deposits surpass overall deposit growth in March, indicating foreign investors’ “optimistic” perceptions of the country’s financial system.
Public sector deposits from commercial banks were seen in a weakening mode; while those in the private sector increased during the review period, according to central bank data.
Total commercial bank customer deposits grew 5.8 percent year-on-year to QR 945.18 billion, constituting more than 54 percent of commercial bank liabilities at the end of March 2021, figures from the Central Bank of Qatar.
Total non-resident commercial bank deposits increased 24.28% year-on-year to QR 266.24 billion, or 28% of total deposits; while the total domestic deposits decreased by 0.08% to reach QR 678.94 billion, representing 72% of the total deposits during the period considered.
Total non-resident commercial bank deposits grew 5.5% month-on-month in March of this year.
“Capital inflows from non-residents will remain high, around $ 21 billion in 2021, driven by loans to government-related entities and a significant increase in deposits from non-residents,” a recent report from the Institute of International Finance, based in the United States.
Of the national deposits of QR 678.94 billion from commercial banks, those of services amounted to QR 245.12 billion, or 36% of the total national deposits, followed by the personal QR 221.54 billion (33% ), Government QR 82.56 billion (12%), industry QR 43.42 billion (6%), others QR 37.03 billion (5%), QR 29.44 billion (4%), entrepreneurs QR 11.84 billion (2%) and real estate QR 7.99 billion (1%).
The overall drop in domestic deposits is largely due to the 10.53% drop in industrial deposits, 4.42% in services and 15.86% in other deposits; even as those of real estate jumped 62.07%, government (7.21%), individuals (6.95%), commerce (0.62%) and contracts (0.34% ).
Private deposits of commercial banks increased 9.24% on an annual basis to reach QR 595.14 billion, with domestic deposits increasing by 3.61% to QR 384.38 billion and foreign deposits by 21.25 billion. % to QR 210.76 billion during the period under review.
Total deposits of non-bank financial institutions soared 62.09% year-on-year to QR 60.99 billion, their domestic deposits increasing by 18.18% to QR 15.8 billion and deposits abroad by 90.16% to QR 45.2 billion at the end of March 2021.
Domestic personal deposits of commercial banks increased 6.95% year-on-year, those of non-Qataris climbing 16.43% to QR 48.05 billion and those of Qataris 4.59% to 173.48 billion of QR in March 2021.
Private sector savings and term deposits increased 8.12% yoy to QR 457.6 billion and current and demand deposits 13.16% to QR 137.55 billion at end-March 2021.
Public sector savings and term deposits fell 9.31% year-on-year to QR 238.18 billion; while those of current and sight deposits increased by 4.21% to reach QR 50.87 billion in March of this year.
Savings and term deposits of non-bank financial institutions soared more than 69% to QR 56.4 billion, and current and demand deposits by around 18% to QR 4.59 billion during the year. period considered.

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