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| Arabia |
| Soddy Arabia net foreign assets surge to SR1.63 trillion |
| 2011-01-06 |
| [Arab News] The Saudi banking system's loan-to-deposit ratio stood at its lowest level in 11 months in November as deposits grew but bank lending to the private sector made another languid performance, falling from the month earlier. Claims on the private sector declined 0.2 percent between October and November while the annual growth rate dropped from 4.1 percent to 3.7 percent due to lower outstanding short- and medium-term loans. While monetary conditions continue to lag, high oil prices have supported a rebound in net foreign assets to pre-2009 levels and offer a prime backdrop for a broader recovery this year. The long-winded revival in bank lending has been a key hurdle before an economic turnaround in the Kingdom. Fiscally, the country is sound, with government estimates last month indicating a 2010 surplus of SR108.5 billion, linked to a good rebound in the global oil price last year to nearly $80 a barrel, on average. Domestically, however, private sector business caution continued to prevail throughout the year. While nonoil private sector GDP growth did rise to 3.7 percent in 2010 from 3.5 percent in 2009, growth came below our forecasts. The government sector, meanwhile, picked up the slack, its GDP growth jumping to a 13-year high of 5.9 percent. Resistance both on the side of companies toward investing their capital into new projects and of banks toward lending has resulted in a fragile recovery in bank credit. Stripping out investments in private securities, bank credit growth to the private sector stood at just 2.6 percent in November, below expansion of 3 percent in October. Growth in loans to public sector enterprises also declined in November to an annual 8.9 percent from 12.6 percent in October and almost 18 percent in September. A loan-to-deposit ratio of 80.27 percent in November represented the lowest since December 2009. Deposit growth has been slow over all for 2010, growing just 2.6 percent in the first 11 months. By comparison, deposit growth was 11.2 percent in 2009 and 17.9 percent in 2008. Still, deposits held in banks advanced 2.1 percent in November from the month earlier, resulting mainly from greater interest in demand deposits, which have been favored this year due to their accessibility and the low interest rates paid on time and savings deposits. While funds held in demand deposits climbed 24.2 percent in the year to November, the amount of savings deposits dropped 15.1 percent. Even time and savings deposits, however, rose 2.4 percent in November from October levels. |
| Posted by:Fred |
| #3 Now that we are vunerable and the EPA is the most powerful influence in the US, whats to stop the rest of the world in treating US like BITCHES? Well, they're gonna have a tough time eating their oil if we can't get enough to grow food for them. |
| Posted by: Ebbang Uluque6305 2011-01-06 12:17 |
| #2 I would hate to think that the POTUS *wants* us humbled and broken. On the other hand, it's hard to imagine very many things he'd do differently if he did, assuming his goal was to do so incrementally so as not to provoke effective response. |
| Posted by: lotp 2011-01-06 10:08 |
| #1 And as Obamas restriction on drilling cost all of the US the ability to produce, find, and make new sources for the nations lifeblood - you just handed another of your enemies a check for all we cannot produce. Now that we are vunerable and the EPA is the most powerful influence in the US, whats to stop the rest of the world in treating US like BITCHES? Huh, Obama? The EPA will Not grant exploration rights, china moves in, the US pays gargantuan amounts for oil. The Economy again dives- as was the initial reason for the downturn. Drill now, drill hard, refine, or live in a prison with foreigners running the country. You elected it, you stop it. |
| Posted by: newc 2011-01-06 02:31 |