The banks operating in Egypt made limited moves to decrease interest rates on their savings certificates and loan portfolios on the first workday after the Central Bank of Egypt (CBE)’s decision to reduce its basic interest rate by 1%, a move that is the first of its kind since 3 November 2016.
The asset-liabilities committees (ALCOs) at several banks will hold on Monday intensive meetings to discuss the effects of the CBE’s decision and the banking market’s situation in terms of the number of customers and the size of liquidity, before considering any reduction of interest rates.
The interest rates on a number of savings certificates and loans portfolios were decreased immediately following the CBE’s decision to lower its interest rates.
Haitham Abdel-Fattah, head of the treasury department at the Industrial Development and Workers Bank of Egypt, said that the bank decided on Sunday to reduce the interest rate of one of its savings certificates from 16.25% to 15%, while it kept the interest rates of its other savings certificates unchanged.
He added that the bank limited the changes to only one savings certificate as it aims to maintain its customers and attract more liquidity required to implement its proposed expansion plan.
Osama Al-Menilawi, deputy head of the treasury department at one of the banks operating in the local market, said that the bank’s ALCO will convene on Monday to discuss the CBE’s decision and its effects on the market before making any decision regarding its interest rates.
