Credits outpace deposits

Nearly three quarters of the money raised by banks in form of term deposits were going back out on the market in form of loans by the end of last year. The credits accounted for some 71% of the deposits made with the banks in December 2003, after peaking at 73% in November. This indicator gauging the liquidity risk across the banking sector had been rapidly deteriorating over the last five months of last year. At the same time, the deterioration occurred against a 1.8% decline in the population’s savings in real terms in 2003 from 2002. To compensate for it, the balance of the ROL deposits made by companies rose 35% in real terms from the previous year. The increasing liquidity risk is also reflected in the decrease of the immediate liquidity indicator, which is a ratio of the cash and deposits in banks, plus the unencumbered government securities in the portfolio and the value of the amounts attracted and lent. It slipped from 59% in late 2002 to 47% on September 30, 2003, and 45% in December 2003. ZF