02:31 PM
Saturday 14 November 2020
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Books – Manal Al-Masry:
Banks will hold intensive meetings during the coming days to discuss reducing interest rates on savings coffers, after the Central Bank’s decision last Thursday to cut interest.
The central bank decided to cut interest rates by 0.5% on deposits and loans for the second time in a row at the Monetary Policy Committee meeting.
The banks hold a meeting of the Assets and Liabilities Committees (ALCO) responsible for pricing interest on all saving coffers after each meeting of the Central Bank to study re-pricing interest on their savings containers.
Mohamed Al-Etribi, President of Banque Misr, said that the asset and liability paradise responsible for determining the bank’s interest rate will hold a meeting to settle interest on savings certificates, deposits and savings accounts during the coming days, after the central’s decisions.
Lamasrawi added that the bank’s decision to reduce interest on certificates and other savings coffers is subject to studying the cost of funds in the bank and the rates in other banks.
Al-Etrebi had praised the central decision to reduce the interest, because it contributes to reducing the cost of the debt burden from the state budget.
Tarek Fayed, President of Banque du Caire, said that the bank’s Assets and Liabilities Committee would hold a meeting in the coming days to discuss reducing interest on certificates, savings accounts and deposits, in conjunction with the Central Bank’s decision to cut interest.
He added to Masrawy that the bank had not moved interest on savings coffers during the previous period, after the Central Bank’s decision to cut interest at its previous meeting in September.
The interest pricing decision on the bank’s savings coffers is subject to feasibility studies related to many different factors, including the interest rate in competing banks and the cost of funds in the bank, according to Fayed.
According to Wali El-Din Lotfi, Deputy Managing Director of Business Sectors at Credit Agricole Egypt, the determination of the interest rate on the saving vessels in the bank is currently under study at the bank.
He added that the committee responsible for setting the interest rate will hold a meeting within days to discuss the fate of the interest.
Four responsible sources in private and government banks said that the Assets and Liabilities Committees will hold meetings to come up with the decision to reduce interest on savings coffers, but they are awaiting the moves of the National Bank and Egypt in settling interest on certificates.
They added that banks take into account the movements of Al-Ahly and Egypt banks, as they are the largest banks in the banking system, and acquire the largest percentage of deposits, customers and increase their competition in interest rates.
Hisham Okasha, Chairman of the Board of Directors of the National Bank of Egypt, said yesterday to Masrawy that the bank will not reduce the interest on the platinum certificate with a maturity of 3 years at the present time and it will be maintained.
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