BANKS LIQUIDITY UP BY 3.3%

MBABANE - The overall liquidity position of the banking industry increased by 3.3 per cent month-on-month to settle at E5.0 billion at the end of March 2019.

The Central Bank of Eswatini reported that this development was after a rise in Emalangeni held by banks in their tills and with the Central Bank of Eswatini over the month under review.

“The liquidity ratio also reflected growth from 29.0 per cent recorded in February 2019 to 31.8 per cent at the end of March 2019. Compared over the same period last year, the liquidity position of the banking industry grew by 16.1 per cent,” reported CBE.

It was also mentioned that credit extended to other sectors amounted to E2.2 billion at the end of March 2019, reflecting a month-on-month growth of 3.6 per cent. This development was solely driven by credit to other financial corporations, which grew by 6.1 per cent month-on-month. Credit to public non-financial corporations and credit to local government, however, decreased by 3.2 per cent and 1.0 per cent respectively.

Credit

Credit extended to businesses amounted to E6.8 billion at the end of March 2019, reflecting a 1.3 per cent growth compared to the previous month. The month-on-month improvement in credit to businesses was predominantly observed in credit to the agriculture and forestry sector and the real estate sector.
Credit to agriculture and forestry sector rose by 7.2 per cent while credit to real estate sector rose by 6.8 per cent over the review month.

“The increase was partly offset by a fall in credit to; manufacturing (-8.8 Per cent), construction (-5.1 Per cent), transport and communication (-3.4 Per cent), distribution and tourism (-2.1 Per cent), mining and quarrying (-1.9 Per cent) as well as community, social and personal services (-0.6 Per cent),” added CBE which is led by Governor Majozi Sithole. 

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