MATTERS OF FACT

NON-RESIDENTS BANK DEPOSITS SURGE

ustomer deposits in commercial banks grew 2.8 percent last year to $173.2 billion on the back of a jump in non-resident deposits and in foreign currency deposits, according to Central Bank data. Deposits denominated in foreign currencies, which account for 71 percent of total deposits, increased 5.8 percent. Deposits in the local currency dropped 3.6 percent over the same period. Deposits by non-resident customers, representing 22 percent of overall deposits, jumped 7.3 percent year-on-year. The deposit growth was mainly driven by the rise in interest rates, which is part of a global trend, according to Bank Audi’s ‘Lebanon Economic Report’ for the last quarter of 2018. Strong activity in December, partly derived from window-dressing, also contributed to the growth, the report said. Banks usually compete before the end of each year to attract more deposits and improve their figures.