DOHA: Qatari banking system’s net domestic credit surged 32.1 percent to QR567bn in July 2015, from QR430bn a year ago. The banking system’s net foreign asset is down by 32.1 percent to QR89bn on year-on-year.
The Qatar Central Bank’s latest data on the country’s banking sector indicates the commercial banks’ total domestic credit rose 13.4 percent to QR619bn. The banks’ private sector credit surged 27 percent to QR402bn. Commercial banks’ private sector deposits increased by 12.5 percent to QR349bn.
Qatar’s total money supply (M1) rose to QR127bn in July, up 1.6 percent compared to QR125bn recorded in the same month in previous year. The country’s average movement in money supply (M2) continued to grow to hit QR519bn or 8.7 percent up on year-on-year.
M1 measures a country’s most liquid components of the money supply, as it contains cash and assets that can quickly be converted to currency. M2 includes savings deposits, money market mutual funds and other time deposits, which are less liquid and but can quickly converted into cash or deposits.
The quasi money supply is up 11.3 percent on year-on-year. It jumped to QR391bn from QR351bn recorded in July 2014.Quasi money means saving and time deposits of private sector,government institutions, and semi government institutions in Qatari Riyal plus their deposits in foreign currencies.
According to the central bank data, the combined assets of commercial bank rose to QR1.03 trillion from QR940bn a year ago. The banks’ credit outside Qatar witnessed a huge jump in July 2015. The size of the credit reached QR74.5bn from QR57bn, up 30 percent. However, the banks’ investment abroad slipped to QR51bn, from QR55bn. Domestic investment also declined to QR126bn from QR130bn.
The total assets of the central bank rose marginally to QR214bn from QR213 bn. QCB’s net international reserves touched QR158bn from QR155bn. The central bank’s value of gold reserves reached QR2.5bn in July, from QR2.3bn a year ago.
QCB’s first quarterly bulletin indicated Qatar’s commercial banks’ domestic investments rose by 5.53 percent to QR129.7bn during Q1 compared to the same period in 2014.
The banks’ domestic investment in March 2014 stood at QR122.9bn. The combined assets of commercial banks scaled up to QR1.01 trillion in the first quarter from QR946bn recorded in March 2014.
The total assets of banks had crossed the QR1 trillion mark for the first time in December 2014, but slipped the threshold in both January and February 2015. The banks’ total assets in February stood at QR991bn.
