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Legal entities' deposits fall off - survey

20.09.2018, 20:00 3264
In the wake of liquidation, withdrawal of licenses and merger processes of several large banks, the volume of corporate deposits decreases. So the volume of deposits of legal entities has made up 8.72 trillion tenges (24 billion US dollars) in August, but less by 1.6% compared to that of the previous year, ranking.kz reports.

The volume of corporate deposits has been decreasing for three years in a row. Moreover, their role in funding is significantly decreased. So the share of legal entities of the total volume of bank deposits is 50.l6% having equaled to retail deposits. Their share was 52.5% in the previous year, and 62.5% - five years ago.

In the background of increasing interest of second-tier banks in deposits of the population, many banks lose their positions on the market of corporate deposits. So only 5 banks have seen an annual increase in the volume of business deposits among 7 major financial institutes of Kazakhstan with the share up to 5% in the sector.

ForteBank has observed an insignificant increase equally focused on legal entities and the population (+16.1% over the year), and Citibank that is a corporate bank (by +35.6% over the year) and the People's Bank (by almost twice). ATBBAnk and CentreCredit have increased their portfolios of deposits of legal entities by 2% year-to-year.

A portfolio of corporate deposits of Sberbank has decreased by 2%, that of Tsesnbank has decreased by 15%.

We note the major second-tier banks consolidate almost 78% of the total number of deposits of legal entities against 58.2% in the previous year.

Among the leading banks that had the annual increase in a portfolio of individuals' deposits the highest interest rate on deposits for businesses with a 1-year term is Fortebank - 8.25% (annual effective interest rate - 8.6%), it is followed by CentreCredit - 8% (annual effective interest rate - 8%) and the People's Bank 6.75% (Annual effective interest rate - 6.63%).

2 second-tier banks have indicated the limit in the number of deposits, they are ForteBank - up to 3 billion tenges and the People's Bank - up to 1 billion tenges, in the meantime, ATF Bank indicated on its website without limits. The minimum amount of a deposit varies from 2 thousand tenges (5.53 dollars) and up to 1 million tenges (2762, 89).

ATF Bank and Citibank do not present detailed information on corporate deposits on its official websites.

The review considers the leading beneficial offers by the banks. In general, the top-5 banks have various products for legal persons, including conditional deposits, for instance, in order to form a liquidation fund of enterprises of the manufacturing sector or to bring foreign workforce, with low-interest rates.

Also, an interest rate can fall off in case of early termination of deposits, or be less while starting a deposit with further partial withdrawal and extra contributions.

Source: BNews.kz

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