(MENAFN- The Peninsula) After a contraction in the third quarter of 2014, Qatar's total money supply (M1) rebounded by QR124bn, or 4.20 percent, in the final quarter of the last year.
The country's average movement in money supply (M2) continued to grow by 3.06 percent to QR504bn from the previous quarter. M2 grew by 4.34 percent in the fourth quarter of 2014 against first quarter of 2014.
M1 measures the most liquid components of the money supply, as it contains cash and assets that can quickly be converted to currency.
M2 includes savings deposits, money market mutual funds and other time deposits, which are less liquid and not as suitable as exchange medium but can be quickly converted into cash or checking deposits.
Qatar Central Bank's (QCB) quarterly (Q4, 14) statistics bulletin indicates net foreign assets (NFA) of Qatar banks declined to QR125bn from the previous quarter's QR138bn. Conversely, net domestic assets (NDA) rose to QR378bn from QR351bn recorded in the third quarter.
The Commercial Banks' combined domestic credit jumped to QR586bn during the fourth quarter, compared to QR572bn in the previous quarter, and 7 percent up from the first quarter of 2014. Commercial Banks' private sector credit rose by 6 percent to QR352bn from the previous quarter and 17 percent up from the first quarter's QR301bn.
In the fourth quarter, QCB's Reserve Money (MO) and Foreign Net Assets (FNA) were marginally down from the previous quarter.
Collective credit facilities of banks increased by 2.67 percent to QR653bn in the four quarter from the previous quarter's QR636bn. Total credit facilities of Qatari banks rose by 3 percent to QR634bn from last September's QR615bn.
Foreign banks' credit facilities declined to QR19bn for the previous quarter's QR20bn.
The lending to public sector witnessed a drop of 2.5 percent in the fourth quarter of the year. Public sector lending declined to QR233bn from the third quarter's QR239bn.
Lending to contractors and real estate sectors saw huge quarter-on-quarter jump in the fourth quarter. Credit facilities to the 'real estate' sector rose by 7.95 percent to QR95bn. Lending to contractors rose QR30bn, up 7.14 percent.
Lending to real estate sector rose to QR94bn in the fourth quarter, compared to QR88bn in the previous quarter. The banks' credit to contractors rose to QR27bn from QR26bn.
Foreign banks' lending to real estate sector jumped to QR892m from QR391m on quarter-on-quarter basis. However, their combined credit facilities slipped to QR19bn from QR20bn during the period.
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