(AFP Photo)
Seven banks have raised prices on returns, in a weak response to the Central Bank of Egypt’s (CBE) decision to raise various rates on deposits and lending.
A recent CBE decision saw an increase in the benchmark overnight deposit rate by 1% to 9.25%, and the overnight lending rate to 10.25%.
Among the banks that responded to the CBE decision are the National Bank of Egypt (NBE), Banque Misr, Bank of Cairo, Egyptian Gulf Bank (EGB), Agricultural Development Bank (ADB), Barclays, and Societe Arabe Internationale De Banque (SAIB) Bank, all of which raised their returns by 1% on investment certificates for 3 years.
Other banks in Egypt are planning to raise prices on returns after the Eid holiday.
Some banks are still considering raising the returns on their savings schemes. The Industrial Development & Workers Bank of Egypt and the Arab Investment Bank are expected to increase the returns by between 0.5% and 1%.
Some have postponed the decision to raise returns by citing raised levels of liquidity and their need to look to market trends first. These include the Housing and Development Bank (HDB), Qatar National Bank (QNB), Commercial International Bank (CIB), and Arab Bank, amongst others.
Hazem El-Sherbiny, director of the Egyptian Arab Land Bank, said the bank committee plans to hold a meeting after the Eid Al-Fitr holiday. In this meeting, they will discuss and study the CBE decision to make a final decision on returns.
Vice president of Citibank Lamis Negm also confirmed the bank is still studying a decision to raise returns, but that a conclusion will be made after Eid Al-Fitr.
