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FINANCIAL NEWS
Jordan bank deposits rise 10% by May-end
30 Jun 2010
(MENAFN) A report issued by the Central Bank of Jordan (CBJ) showed that private deposits in Jordan’s banking sector were up 10 percent year-on-year at the end of May but growth in recent months has slowed sharply, Reuters reported.
The deposits, mostly dinar-denominated assets that exclude public funds, stood at $23.5 billion end of May, up 2.4 percent since the end of December 2009.
Deposit growth has eased substantially since the end of last year, a trend analysts attribute to a delayed reaction to the global recession last year which continues to hurt domestic demand, worker remittances and foreign investments.
Bankers attribute last years’ high growth rates to strong inflows into local currency assets encouraged by a CBJ policy to allow a wider interest rate differential against the dollar in favor of the dinar.
Deposits grew 13.7 percent last year. In contrast, loans grew just 1.5 percent, after surging 14.2 percent in 2008.
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