Total deposits in Kuwaiti dinars and foreign currency in the banking sector reached 63.9 billion dinars by the end of the first quarter of this year, marking the highest liquidity observed, reports Al-Jarida daily. This reflects a diverse range of deposit sources spanning one month to over three years. Demand deposits accounted for approximately 13.2 billion dinars, representing mostly cost-free liquidity. Term deposits for up to one month totaled about 19.3 billion dinars, slightly down from the previous year’s peak of 21.2 billion dinars.

Deposits for longer periods varied from one to three months, they rose from 10.3 billion to 11.4 billion dinars, while deposits over three months to six months decreased from 6.8 billion to 5.19 billion dinars. There was a notable increase in deposits for periods exceeding six months to nine months, rising from 2.4 billion to 3.3 billion dinars, showing a 37.5 percent increase, indicating a trend towards longer term investments with attractive returns. Deposits for periods exceeding nine months to a year grew slightly from 3.2 billion to 3.4 billion dinars.

Longer-term deposits from over one year to three years also saw modest growth from 3.2 billion to 3.61 billion dinars, a 10 percent increase. The smallest growth was observed in deposits maturing over three years, growing by 3 percent from 4.17 billion to 4.3 billion dinars. Overall, the sector appears well positioned financially with ample liquidity and a balanced distribution of deposit terms, offering competitive rates to local and foreign customers. This stability is reflected in the reduced interbank market activity, which decreased by 18.4 percent from December 2023 to April 2024, indicating sufficient liquidity across all sectors

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