The outcome of savings certificates issued by Banque Misr amounted to EGP 1.2bn by 3:30 pm Monday, according to Mohammed El-Etreby, Chairman of the bank.
The National Bank of Egypt (NBE) and Banque Misr offered, Sunday, savings certificates with an interest rate of of 12.5% per annum, paid monthly.
The two banks succeeded in attracting EGP 2.3bn through these certificates on their first day, of which about EGP 1.8bn went to the NBE’s certificate, and EGP 500m for the Banque Misr Certificate.
There was great ambiguity in the banking sector around the amount of liquidity drawn by these certificates from outside the banking sector.
Reactions of other banks operating in the local market varied towards the action of NBE and Banque Misr. Assets and Liabilities Committees (ALCO), responsible for setting interest rates banks, continued their meetings to discuss the future rates of return on their savings coffers.
Société Arabe Internationale de Banque (SAIB) decided to offer new savings certificates with a yield of 12.5% per annum, paid monthly, after obtaining the approval of the Central Bank of Egypt (CBE). Banque du Caire also decided to increase the yield for its savings Certificate (Primo) to 12.5%.
Other banks are considering similar steps, while many other banks are waiting to see interest rates on treasury bills and bonds before making any decisions.
Treasury bills and bonds are the most important investments for banks from January 2011 and until now. Their yield was stable on Sunday and Monday, and the market anticipates the bids on the bills on Thursday.