Bank deposits fell 10 percent in the third quarter of this year, according to the Quarterly Economic Bulletin by Maldives Monetary Authority (MMA).
Foreign currency deposits in banks accounted for a 76% decline in deposits in the third quarter, according to data released by the MMA. The dollar is the largest foreign currency deposited in Maldivian banks. The MMA said the decline in bank deposits was likely due to higher import costs.
Total loans disbursed by banks stood at MVR 32.5 billion despite a decline in deposits. That’s an increase of 2%. Bank loans and credit to the private sector stood at MVR 28.3 billion.
Loans to the private sector increased in the third quarter of this year. However, private sector disbursements declined by 1% year-on-year.
The largest percentage of loans were disbursed to tourism and construction sectors during the period. Tourism accounted for 38% of the loans. Majority of the loans were taken for renovation and construction of new resorts, MMA reported.
In addition to tourism and construction, loans for private use and businesses have also been disbursed. Despite the loan volume, the number of loans to private individuals rose sharply in the last quarter. Credit card loans increased by 27% as well.