deposits in the banking sector witnessed a jump of 2 billion dinars, by 4.6% during the past 5 months, to reach the level of 45.47 billion dinars by the end of last August, compared to their levels By the end of March 2020, amounting to 43.46 billion dinars, since the beginning of the spread of the Corona pandemic in Kuwait, and the implementation of precautionary measures to confront the pandemic and the closure of economic sectors.
According to Central Bank of Kuwait data, this increase is supported by an increase in the savings of the private sector and individuals in the banking sector, as private sector deposits increased by about 2.1 billion dinars during that period, To reach 37.99 billion dinars by the end of last August, compared with 35.89 billion dinars at the end of last March, a rise of 5.8%, according to Central Bank of Kuwait data for the month of August 2020.
It seems that there is a preference for banks as a safe haven for savings during the current crisis, as the stock markets witnessed great volatility and heavy losses during the past months, which prompted the private sector (companies and individuals To resort to the banking sector and keep savings in it through deposits, despite the low interest rates last March, as a result of the Central Bank of Kuwait lowering the discount rate in Kuwait to a level of 1.5% to face the repercussions of the Corona crisis.
and at the end of last August, deposits witnessed a monthly increase of 1.26%, compared to the level of 44.9 billion dinars at the end of last July, and compared to their levels in August of last year , Deposits increased annually by 5.3%, an increase of 2.311 billion dinars.
In terms of private sector deposits in Kuwaiti dinars, they rose by 1.4% per month by the end of August to reach 35.84 billion dinars, after the private sector increased its deposits by 513 million dinars during The month, while private sector deposits increased in dinars annually, amounting to 2.35 billion dinars from August 2019 levels, by 7.02%.
With regard to government deposits, they decreased by 28 million dinars by the end of last August, bringing the total government deposits in the banking system to 7.47 billion dinars, a monthly decline of 0.37%, On an annual basis, it increased by 4.4% compared to the levels in August of last year amounting to 7.161 billion dinars, so that the government increased its deposits of 316 million dinars within a year.
