10:00 pm
Tuesday 19 April 2022
I wrote – Manal Al-Masry:
Private banks continue to adhere to the interest rate on certificates, despite the negative consequences of the 18% certificate that Al-Ahly Bank and Egypt put forward a month ago.
The certificate with a return of 18% negatively affected the banks, with customers tending to break existing certificates, or withdraw deposits in favor of the high-return certificate.
On March 21, Al-Ahly Bank and Egypt decided to offer a new savings certificate with a high interest rate, after the Central Bank announced a 1% increase in key interest rates for the first time in 5 years, and the pound’s depreciation against the dollar.
The certificate attracted 18%, a proceeds of about 556 billion pounds from its sale in Al-Ahly and Egypt banks within a month of its issuance, and attracted from outside and inside other banks the deposits of customers, as there are no certificates matching the same interest currently offered in the two government banks.
Bankers in some private banks, who kept the certificate’s interest unchanged – justified their failure to keep pace with Al-Ahly and Egypt banks, due to the high average interest rate gap of 9.25% and the certificate return, which incurs losses for the rest of the banks.
Masrawy provides details of the interest in the largest 7 private banks, after the presence of an 18% certificate in Al-Ahly and Egypt banks:
The Commercial International Bank: It offers a triple certificate, the interest rate on which ranges between 9.5%, the return is paid monthly, 9.75% is paid every quarter, and 10% annually, the return is paid every 6 months.
– Arab African International Bank: It offers a triple saving certificate with interest ranging between 10.5% annually on the periodicity of the monthly return, 10.75% annually on the periodicity of the quarterly return, 10.8750% annually on the periodicity of the semi-annual return, and 11% annually on the periodicity of the annual return .
Med Bank: It sells a triple savings certificate with an interest rate of 11.25%, and the return is paid in advance on a monthly periodicity.
– Housing and Development Bank: It offers a 3-year construction certificate with an annual return ranging between 10.50% annually for a periodic monthly return, 10.75% annually for a periodic quarterly return, and 11% annually for a semi-annual periodicity.
The Egyptian Gulf Bank EG offers a Mega Savings Certificate with interest ranging between 11.5% annually in the first year, 10.5% annually in the second year, and 9.5% annually in the third year, and the return is paid monthly.
Banque du Caire: It offers a triple saving certificate, with an interest rate of 10.25% annually on the periodicity of the monthly return, and 10.5% annually on the periodicity of the quarterly return.
– Qatar National Bank Al Ahli (QNB): It offers a triple certificate, the interest rate on which ranges between 10.5% annually, the return is paid monthly, and 10.75% annually, the return is paid every 3 months.