Bank deposits soar to record high in past six months
Increase comes on back of high govt borrowing, sluggish spending by businessesKARACHI: The deposits at commercial banks have continued to grow notably in the past six successive months. “It is surprising to note that the deposits have consecutively grown in the first quarter (January-March 2020) as well. “The government’s high borrowing from commercial banks has created the money (triggered the multiplier effect) in the banking system,” he added. Banks usually offer fixed deposit schemes at times when the benchmark interest rate stands high in the country. In Pakistan, Islamic banks’ deposits dip due to overregulationThe banker said deposits mostly fluctuates when farmer harvest major crops like wheat cotton, sugarcane, rice and maize during winter and summer seasons.
Source: The Express Tribune April 12, 2020 03:21 UTC
