Abstract
The united arab republic (U.A.R) is an example of a country where the interpretation and comparability of money and banking statistics are made difficult by the fact that, within the last few years, several major changes have taken place in the status and coverage of the banking system.1
The united arab republic (U.A.R) is an example of a country where the interpretation and comparability of money and banking statistics are made difficult by the fact that, within the last few years, several major changes have taken place in the status and coverage of the banking system.1
The changes began shortly after the Suez crisis in 1956. Prior to that time, the Egyptian banking system was predominantly foreign-owned. On January 15, 1957, a law was enacted making all banks joint-stock companies. On February 11, 1960, the National Bank of Egypt (which was also the central bank) and Bank Misr (the leading commercial bank) were nationalized. On January 1, 1961, the law that created the Central Bank of Egypt as an institution separate from the National Bank came into force, and the National Bank became exclusively a commercial bank. On July 20 of the same year, the complete nationalization of all banks and insurance companies was effected. The period since then has been one of bank mergers; as a result, five large banks (the National Bank of Egypt, Bank Misr, Bank of Alexandria, Bank of Cairo, and Bank of Port Said) now constitute the commercial banking system of the country. Beginning July 1, 1964, each of these five banks has been entrusted with the exclusive responsibility for financing a specific sector of the economy, except for the main agricultural commodities, which are financed by all five banks. Finally, since April 1964, the Central Bank has had complete control of the supervision of the commercial banks.
In addition to the Central Bank and commercial banks, which form the monetary sector of the U.A.R., there are specialized banks; in the International Monetary Fund's monthly publication International Financial Statistics (IFS), the specialized banks are treated as financial institutions outside the monetary sector. The government sector, overlapping in functions with the private sector, poses special problems in the U.A.R.
The Money and Banking System
The central bank
The National Bank of Egypt functioned as a central bank from its establishment in 1898 through December 1960. The Bank was founded as an Egyptian company with capital of £E 1 million, half of which was subscribed in London. It issued notes and performed other central banking functions. It was the government banker, held the cash reserves of commercial banks, and acted as a lender of last resort.
The first attempt to control bank credit did not come about until 1947, when the Governor of the Bank concluded a gentlemen's agreement with those commercial banks which were then members of the clearing house. By virtue of the agreement, the commercial banks kept noninterest-bearing deposits with the Bank as reserves against deposit liabilities. They also agreed to submit monthly balance sheets.
Central banking legislation in the U.A.R. began in 1951, when the National Bank was converted from a de facto to a de jure central bank.2 The Central Bank law increased government supervision of the Bank's operations, increased the Bank's powers in the regulation of the currency by permitting the use of Egyptian Government bonds in the cover for the note issue, and extended the Bank's control over banking policies by establishing reserve requirements and a liquidity ratio. The last, however, was not enforced until February 17, 1958. The government supervision was effected by the appointment of a Supreme Committee—consisting of three representatives of the Government and three of the Bank, and under the chairmanship of the Minister of Economy—which was responsible for monetary, credit, and exchange policy.
While the 1951 law gave authority to the Supreme Committee to deal with money, credit, and exchange, it did not specifically spell out central bank responsibilities and functions. This was accomplished by a 1957 law governing banks and credit, which remains part of the present legislation.3
The laws creating a Central Bank as a separate institution came into force on January 1, 1961, when the Central Bank took over the assets and liabilities of the Note Issue Department of the National Bank as well as those functions of the Banking Department which were related to central banking.4 The liabilities comprised the accounts of the Government and of other public legal entities designated by the Minister of Economy, the accounts of international monetary and credit institutions, bankers' deposits, and clearing and payments agreements accounts. The assets consisted of that part of the gold and foreign exchange holdings that exceeded the existing requirements of the National Bank, loans granted to banks and those guaranteed by the Government, clearing and payments agreements accounts, and foreign securities. The difference between the assets (taken at book value) and liabilities was to be settled either by crediting the National Bank's account with the Central Bank or by having the National Bank turn over to the Central Bank government or government-guaranteed securities.
The establishment of the new Central Bank meant that, beginning in 1961, there was a break in the comparability of the U.A.R. data for the Central Bank section in IFS; likewise, the transfer of the National Bank to the commercial bank group created a break in the comparability of the data for the Commercial Bank section. However, for the Monetary Survey section, which consolidates both sections, there is no serious break in comparability.
Commercial banks
Until 1952, statistics on commercial banking in the U.A.R. were reported separately for clearing and for nonclearing banks. The clearing banks were members of the clearing houses at Cairo and Alexandria and of the Egyptian Bankers Association. Practically all of them were banks of long standing that had begun operations as branches of foreign banks. Most nonclearing banks, on the other hand, had been established after World War II, and only about half of them were branches of foreign banks. Since September 1952, the published statistics have related to the aggregate position of all commercial banks in Egypt.
According to the measures for Egyptianization of the banking system in 1957,5 banks were to take the form of Egyptian joint-stock companies with paid-up capital (of not less than £E 500,000 each), and were to be permanently owned by nationals; bank directors and management also were to be U.A.R. nationals. Banks to be established thereafter would have to have the approval of both the Ministry of Economy and the Central Bank. The measures affected practically all banks operating in Egypt, whether branches of foreign banks or Egyptian companies.
In July 1957 a more comprehensive law on banks and credit was passed.6 It dealt with the registration and control of banks, defined commercial and noncommercial banks, and provided measures for credit control. As a result of this law, two departments were established in the Central Bank: one for the control of banks and the other for the centralization of credit statistics.
Besides the registration, inspection, and supervision of banking institutions, the Bank Control Department is responsible for following credit and monetary developments and for collecting and analyzing monthly and other returns submitted by banks. The Credit Statistics Department collects monthly statistics on authorized and utilized credit facilities for each client. The returns submitted by banks contain details on the legal status, economic activity, and residence of borrowers, on the size of credit facilities made available, and on the collateral held as security.
As stated above, the Bank Misr (the leading commercial bank) and the National Bank of Egypt were nationalized early in 1960,7 and the nationalization of the banking system and of insurance companies was completed in July 1961, at which time two other laws were also issued.8 According to the latest published registration records (for June 1962) of the Bank Control Department, there were then 24 commercial banks with 307 branches. The first law issued in July 1961 nationalized the foregoing banks and companies as well as a list of 50 companies. (By the end of March 1964, about 400 companies had been added to this list.) The second law provided for government participation in not less than 50 per cent of the capital of 83 listed companies. The third law stated that no natural or juridical person would be allowed to own shares with a market value exceeding £E 10,000 in 45 companies listed; excess shares were to be transferred to the Government. In all cases, compensation was to be effected through the issue of 4 per cent government bonds, redeemable at par in 15 years, subject to the Government having the option to redeem the bonds in whole or in part at any time after 10 years.
The latest phase in the evolution of U.A.R. banking began in July 1964, when the Government decided to have each segment of the public sector conduct its business through only one of the five commercial banks, except for the financing of cotton and rice, which would continue to be handled by all five banks. The business to be transacted by each bank is outlined in the Appendix (p. 326).
A major activity of U.A.R. commercial banks is the financing of the large cotton trade. The seasonal cycle of cotton trade financing is clearly reflected in commercial bank statistics. It begins in September, reaches its peak in December, and gradually declines to its lowest point in August, when the cotton season ends.
The specialized banks
The group of specialized banks consists of a large agricultural bank, four mortgage banks, and a small industrial bank. The balance sheet totals of these banks at December 1964 were £E 143 million, £E 27 million, and £E 11 million, respectively. Their operations are financed primarily from lines of credit and/or the sale of their bonds to the Central Bank and commercial banks; in December 1964, these obligations amounted to £E 108 million, £E 6 million, and £E 8 million, respectively. Their deposit liabilities are negligible except for the agricultural bank, which holds small demand deposits of cooperatives and the Government.
After previous attempts to establish an agricultural bank had failed, the Agricultural Credit Bank was established in July 1931 to fill the large gap that had existed for a long time in the credit structure of Egypt. It was founded as a joint-stock company, the Government subscribing half the capital of £E 1 million and commercial and mortgage banks subscribing the other half. The Government guaranteed a minimum 5 per cent dividend and lent to the Bank £E 6 million (later raised to £E 9 million) at 1 per cent interest. In March 1949, the Bank was given its present name of Agricultural and Cooperative Credit Bank, and its capital was raised to £E 1.5 million, the Government subscribing half the increase and the cooperative societies the other half. In 1957, the Bank was authorized to issue £E 20 million of 10-year bonds at 3 per cent; and in 1962, the amount was raised to £E 30 million, of which £E 25 million was actually issued and taken up by the Central Bank.9 In 1961, the Bank issued bills amounting to £E 17.2 million repayable within 3 years at 3½ per cent. These bills were taken up by commercial banks and declared eligible for rediscount at the Central Bank. In 1962, the Government guaranteed the Bank's bills up to £E 20 million.
The activities of the Bank now cover the entire field of agricultural credit. Most of its loans are short-term loans (up to 14 months) to help to finance cooperatives and individual farmers, mainly for the purchase of seeds, fertilizers, etc. It also grants medium-term loans of up to 3 years for the purchase of livestock and up to 10 years for the purchase of machinery and land improvement. Long-term loans of up to 20 years are granted for land reclamation. In addition, it deals in seeds, fertilizers, jute bags, and other agricultural supplies, and its loans are given partly in kind and partly in cash. The Bank is also responsible for performing specific functions for the Government, such as receiving, storing, and distributing domestic and imported basic food supplies.
Early in 1964, the Bank was reorganized and converted into a public organization under the Ministry of Agriculture.10 Its branches (140 in June 1962) were grouped into Agricultural and Cooperative Credit Banks, one for each governorate,11 and took the legal form of government-owned joint-stock companies.
The government
The growth of the government sector has been the predominant feature in the U.A.R. economy since 1956. Previously, the government sector covered some local governments, the traditional government enterprises—such as railways, posts, and telegraphs—and the Treasury functions relating to the coin issue and postal savings. Since the nationalization laws of 1961, however, the Government has taken complete control over every major economic activity in the country. This was accomplished late in 1961 when a Supreme Council was established for public organizations under the chairmanship of the President of the Republic, with the Vice-Presidents and Ministers as members.12 Under the Decree, a total of 367 companies were affiliated to 38 specialized public organizations under 13 Ministries.
Statistical Problems
Country monetary statistics in International Financial Statistics (IFS) presume (1) that there is a monetary system which can be separated from government on the one hand and from other financial institutions on the other, (2) that there is a useful distinction between the foreign sector and the domestic sector, (3) that within the domestic sector there is a useful distinction between the government sector and the private sector, and (4) that the operation of the monetary system can be deduced from the consolidated accounts of the monetary authorities and the consolidated accounts of deposit money banks.
The major changes that have taken place in the U.A.R. economy raise the question whether the distinctions maintained in IFS can be made for the U.A.R. on the basis of the sectored bank accounts available from January 1962.
For purposes of the country's development plan, all banks now submit four basic tables to the Bank Control Department of the Central Bank of Egypt. The first is a balance sheet, and the others give details on credit facilities, investment portfolio, and deposits. The sectoring in the last three tables with corresponding sectoring in IFS is shown in Table 1.
Comparison of Sectoring in Development Plan Tabulations of United Arab Republic With Sectoring inInternational Financial Statistics1
IFS, published monthly by the International Monetary Fund.
Comparison of Sectoring in Development Plan Tabulations of United Arab Republic With Sectoring inInternational Financial Statistics1
| Development Plan | International Financial Statistics | ||
|---|---|---|---|
| I. | Public Enterprises Sector | Government | |
| a. | Public Organizations | ||
| b. | Other Public Authorities | ||
| II. | Organized Business Sector | Private | |
| a. | Companies affiliated to Public Organizations | ||
| b. | Other companies | ||
| III. | Nonorganized Business Sector | Private | |
| IV. | Cooperative Societies Sector | Private | |
| V. | Public Services Sector | Government | |
| a. | Treasury | ||
| b. | Government Departments | ||
| c. | Local Governments | ||
| VI. | Private Sector | Private | |
| a. | Individuals and individual establishments | ||
| b. | Local nonprofit organizations | ||
| c. | Foreign organizations in U.A.R. | ||
| VII. | Rest of World Sector | Foreign | |
| a. | Banks and correspondents | ||
| b. | Others | ||
| VIII. | Financial Intermediaries Sector | ||
| a. | Public Organizations for | Government | |
| 1. Insurance and pensions 2. Social security 3. Savings 4. Insurance 5. Banks | |||
| b. | Insurance companies | Private | |
| c. | Post Office Savings Bank | Monetary System | |
| d. | Central Bank | Monetary System | |
| e. | Commercial banks | Monetary System | |
| f. | Industrial bank | Specialized Banks | |
| g. | Agricultural and Cooperative Credit Bank | Specialized Banks | |
| h. | Mortgage banks | Specialized Banks | |
IFS, published monthly by the International Monetary Fund.
Comparison of Sectoring in Development Plan Tabulations of United Arab Republic With Sectoring inInternational Financial Statistics1
| Development Plan | International Financial Statistics | ||
|---|---|---|---|
| I. | Public Enterprises Sector | Government | |
| a. | Public Organizations | ||
| b. | Other Public Authorities | ||
| II. | Organized Business Sector | Private | |
| a. | Companies affiliated to Public Organizations | ||
| b. | Other companies | ||
| III. | Nonorganized Business Sector | Private | |
| IV. | Cooperative Societies Sector | Private | |
| V. | Public Services Sector | Government | |
| a. | Treasury | ||
| b. | Government Departments | ||
| c. | Local Governments | ||
| VI. | Private Sector | Private | |
| a. | Individuals and individual establishments | ||
| b. | Local nonprofit organizations | ||
| c. | Foreign organizations in U.A.R. | ||
| VII. | Rest of World Sector | Foreign | |
| a. | Banks and correspondents | ||
| b. | Others | ||
| VIII. | Financial Intermediaries Sector | ||
| a. | Public Organizations for | Government | |
| 1. Insurance and pensions 2. Social security 3. Savings 4. Insurance 5. Banks | |||
| b. | Insurance companies | Private | |
| c. | Post Office Savings Bank | Monetary System | |
| d. | Central Bank | Monetary System | |
| e. | Commercial banks | Monetary System | |
| f. | Industrial bank | Specialized Banks | |
| g. | Agricultural and Cooperative Credit Bank | Specialized Banks | |
| h. | Mortgage banks | Specialized Banks | |
IFS, published monthly by the International Monetary Fund.
In constructing monetary statistics for a country, the most difficult task is to define the boundaries of the government sector. The banking and foreign sectors are usually much easier to define. The characteristics of money-creating institutions can be determined quickly by looking at just a few headings on the liability side of balance sheets of banks. Conceptually, the foreign sector is easier to define for purposes of monetary analysis than for the measurement of international liquidity. Problems in this sector arise mainly in determining what is a foreign liability rather than in determining what is a foreign asset. This is because banks are more concerned with the currency in which the liability is denominated than with the residence of the creditor. Quantitatively, this is a minor problem in most countries.
To the monetary statistician, however, defining the government sector is the cornerstone on which his structure—an analytical balance sheet—rests. Once he manages to demarcate the government sector, the rest of the building blocks with which to construct the larger domestic sector appear to fit in the right place. This follows from the fact that, with the banking sector already defined, the private sector is what is left after defining the government sector. A total for domestic credit is produced by adding net claims on government to gross claims on the private sector. The asset side of the balance sheet is completed by adding domestic credit to net foreign assets. The liability side causes little difficulty and is also practically completed, since by definition money and quasi-money relate only to private sector holdings.
The difficulty of defining the government sector arises because of the complexity of the problem of defining the government itself. This is a problem common to both monetary statistics and government finance statistics. In financial statistics, “government” can and does mean many things in many countries, depending on answers to many questions, such as the monetary functions the government performs, the existing levels of government (i.e., central, local, and official entities), the availability of data for each, banking and budgeting practices, etc.
In IFS, whose aim is to produce integrated economic country pages, the preference is to make the government sector identical in both monetary and government finance statistics, by having this sector relate mainly to the Central Government. In government finance statistics, the Central Government covers the consolidated cash accounts of the Treasury, all departments, agencies, and funds of the Central Government, social insurance systems, debt retirement funds, and government enterprises motivated mainly by fiscal and social policies.
In the U.A.R., the task of defining the Government sector is centered mainly in the Public Enterprises sector, covering a long list of institutions in which it is very difficult to distinguish between those motivated by governmentlike decisions and those motivated by businesslike decisions. To group such mixed institutions under the Government sector is to run the risk of understating all the domestic sector series in the analytical balance sheet.
The Public Enterprises sector consists of two subsectors, Public Organizations and Public Authorities. The former, akin to holding companies, are in charge of supervising and coordinating the work of a number of affiliated companies which are engaged in the same economic activity. The Public Organizations are included in the Government sector, but the companies they direct, reported in the Plan's Organized Business sector, are included in IFS in the Private sector, described below. The Public Organizations, organized in 1961, have taken over the Economic Development Organizations established in 1957, by means of which the Government acquired substantial interests in banks and in insurance, commercial, and industrial companies. Public Authorities, on the other hand, consist of the traditional government enterprises, including under the present economic arrangements some with large commercial operations, such as the Suez Canal Authority, the Railway Authority, and the various city power and water authorities. The problem is further complicated by the fact that there is no clear distinction between a Public Organization and a Public Authority. Agencies previously designated as Authorities have been converted into Organizations following nationalization measures, as a result of which former privately owned concerns were attached to an already functioning government agency. Examples are the important Petroleum and Pharmaceutical Organizations, which continue to operate as vast commercial enterprises in their own sphere in addition to being holding companies on behalf of the Government.
It would appear, therefore, that the boundaries of the Government sector in the U.A.R. could be improved if it were possible to examine the functions and the nature of the business conducted by each of the long list of Public Organizations and Public Authorities (or at least by the largest of them). Until this task can be accomplished, preferably with the view to obtaining parallel government finance statistics, the demarcation of the Government sector remains arbitrary.
The composition of the Government sector and the Private sector in IFS, and the reasons for inclusion or exclusion of individual entries, are set out below. Public Organizations (a subsector in both the Public Enterprises and Financial Intermediaries sectors of the Plan) are included in the Government sector because they act like other administrative government agencies. The decision to include Public Authorities is, however, based solely on the fact that they largely comprise the traditional government enterprises and are financed mainly, if not wholly, by the Treasury. The decision to include Local Governments is based mostly on practical grounds. Local Governments are a subsector in the Plan's Public Sendees sector, and the amount of their operations with the banking system is relatively small. The last component of the Government sector in IFS is the counterpart of Post Office savings deposits. The basis for this inclusion is an assumption that the Post Office in the U.A.R., as in most countries, invests its deposits in government securities. Post Office deposits are included in privately held Quasi-Money.
“Private Sector” in the IFS pages for the U.A.R. comprises the Plan's Organized Business sector, including insurance companies (a subsector under Financial Intermediaries), Nonorganized Business sector, Cooperatives Societies sector, Private sector proper, and Specialized Banks. Conceptually, only the first and last of the components mentioned cause problems.
The Organized Business sector comprises companies affiliated to Public Organizations and companies which have not been nationalized. Before nationalization, the affiliated companies consisted of most of the Private-sector type corporations. The decision to include them in the Private sector and exclude them from the Government sector is based on their being independently administered, remaining joint-stock companies, and continuing to operate on commercial lines. The Specialized Banks are treated as financial institutions and, consequently, as part of the Private sector. Because claims of the banking system on these banks have grown considerably during the last few years they are, however, shown separately. The Specialized Banks were excluded from the Government sector because ownership alone is not decisive in their treatment. They were excluded from the Monetary System sector on the grounds that they are not money-creating institutions. Their deposit liabilities are small and their dependence for finance from the Central Bank and commercial banks is large.
There are no conceptual problems regarding either the Nonorganized Business sector or the Private sector proper. The former consists of partnerships and private limited liability companies, and the latter comprises individuals and individual establishments, local nonprofit organizations, and branches of foreign companies operating in the U.A.R.
Revised money and banking data, sectored as described above and based on statistics available from 1962, appeared in the March 1964 issue of IFS. Subsequently, in the Economic Review of the Central Bank of Egypt there was published an article, “Revised Series on Money Supply for U.A.R.” and, as an annex, a table, “Money Supply and Affecting Factors,” containing revised series of end-of-year data for 1952 and 1953 and quarterly data for 1954-September 1963.13 Monthly data, beginning 1956, were published later.14
The definition adopted by the Central Bank of Egypt in compiling its revised series on money supply is that of IFS, and the data in the Bank's Economic Review table are identical to, or reconcilable with, the Monetary Survey in IFS. A reconciliation is needed because the Bank's table does not add the Treasury's position in the International Monetary Fund to foreign assets, nor does it subtract it from claims on government. IFS considers the Treasury's position in the Fund as attributable to the monetary authority. Year-end figures, 1958–64, as shown in IFS, are given in Table 2.
Money And Banking Statistics of the United Arab republic, inIFS,1 End of Year, 1958–64
(In millions of Egyptian pounds)
International Financial Statistics, published monthly by the International Monetary Fund.
Money And Banking Statistics of the United Arab republic, inIFS,1 End of Year, 1958–64
(In millions of Egyptian pounds)
| 1958 | 1959 | 1960 | 1961 | 1962 | 1963 | 1964 | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Central Bank | ||||||||||
| Foreign Assets | 143.2 | 123.2 | 120.5 | 94.8 | 83.2 | 67.1 | 83.7 | |||
| Claims on Government | 214.3 | 231.1 | 286.9 | 246.6 | 252.7 | 339.1 | 399.1 | |||
| Claims on Specialized Banks | 28.9 | 46.3 | 53.2 | 56.1 | 82.2 | 76.9 | 81.4 | |||
| Claims on Commercial Banks | 20.5 | 31.1 | 31.2 | 30.2 | 44.8 | 77.2 | 125.6 | |||
| Reserve Money | 289.7 | 281.6 | 306.7 | 323.6 | 335.6 | 416.4 | 488.4 | |||
| of which: Currency Outside Banks | 206.9 | 200.0 | 219.8 | 256.4 | 275.9 | 344.7 | 416.7 | |||
| Government Deposits | 32.0 | 30.3 | 28.9 | 5.4 | 11.8 | 22.1 | 32.7 | |||
| Counterpart Funds | — | 17.1 | 35.9 | 1.3 | 9.5 | 26.0 | 32.3 | |||
| Foreign Liabilities | 70.0 | 84.1 | 89.1 | 87.9 | 106.8 | 97.1 | 133.7 | |||
| Other Items (Net) | 15.3 | 18.5 | 31.5 | 9.5 | -0.8 | -1.3 | 2.7 | |||
| Commercial Banks | ||||||||||
| Reserves | 52.9 | 57.1 | 67.6 | 65.4 | 60.8 | 71.3 | 89.7 | |||
| Foreign Assets | 27.3 | 36.3 | 27.3 | 31.6 | 28.5 | 30.4 | 65.4 | |||
| Claims on Government | 23.1 | 31.2 | 51.1 | 126.9 | 151.5 | 207.1 | 272.3 | |||
| Claims on Private Sector | 208.4 | 245.0 | 248.0 | 260.3 | 279.3 | 308.0 | 323.1 | |||
| Claims on Specialized Banks | — | — | — | 18.0 | 22.9 | 32.9 | 43.4 | |||
| Demand Deposits | 148.9 | 163.5 | 165.3 | 197.7 | 166.5 | 170.7 | 198.8 | |||
| Time and Savings Deposits | 68.3 | 84.2 | 79.3 | 86.0 | 134.7 | 172.9 | 179.2 | |||
| Government Deposits | 29.2 | 35.5 | 48.5 | 70.9 | 48.2 | 59.2 | 96.2 | |||
| Counterpart Funds | 5.8 | 9.2 | 17.9 | 47.6 | 58.3 | 75.5 | 76.5 | |||
| Foreign Liabilities | 4.4 | 7.8 | 5.8 | 11.3 | 34.6 | 29.2 | 59.7 | |||
| Credit from Central Bank | 20.5 | 31.1 | 31.3 | 25.9 | 39.6 | 70.8 | 128.5 | |||
| Other Items (Net) | 34.5 | 38.3 | 45.7 | 62.7 | 61.1 | 71.4 | 55.0 | |||
| Post Office: | ||||||||||
| Savings Deposits | 34.8 | 38.6 | 40.6 | 43.4 | 51.6 | 59.2 | 68.3 | |||
| Monetary Survey | ||||||||||
| Foreign Assets (Net) | 96.1 | 67.6 | 52.9 | 27.2 | -29.7 | -28.8 | -44.3 | |||
| Domestic Credit | 457.3 | 532.8 | 610.2 | 677.0 | 792.0 | 951.0 | 1,064.7 | |||
| Claims on Government (Net) | 211.0 | 235.1 | 301.2 | 340.6 | 395.8 | 524.1 | 610.8 | |||
| Claims on Private Sector | 217.4 | 251.4 | 255.8 | 262.3 | 291.1 | 317.1 | 329.1 | |||
| Claims on Specialized Banks | 28.9 | 46.3 | 53.2 | 74.1 | 105.1 | 109.8 | 124.8 | |||
| Money | 384.8 | 389.7 | 404.8 | 455.4 | 442.8 | 515.7 | 615.7 | |||
| Quasi-Money | 104.9 | 123.7 | 120.7 | 129.5 | 186.4 | 232.6 | 247.7 | |||
| Counterpart Funds | 5.8 | 26.3 | 53.8 | 48.9 | 67.8 | 101.5 | 108.8 | |||
| Other Items (Net) | 57.9 | 60.7 | 83.9 | 70.3 | 65.4 | 72.4 | 48.2 | |||
International Financial Statistics, published monthly by the International Monetary Fund.
Money And Banking Statistics of the United Arab republic, inIFS,1 End of Year, 1958–64
(In millions of Egyptian pounds)
| 1958 | 1959 | 1960 | 1961 | 1962 | 1963 | 1964 | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Central Bank | ||||||||||
| Foreign Assets | 143.2 | 123.2 | 120.5 | 94.8 | 83.2 | 67.1 | 83.7 | |||
| Claims on Government | 214.3 | 231.1 | 286.9 | 246.6 | 252.7 | 339.1 | 399.1 | |||
| Claims on Specialized Banks | 28.9 | 46.3 | 53.2 | 56.1 | 82.2 | 76.9 | 81.4 | |||
| Claims on Commercial Banks | 20.5 | 31.1 | 31.2 | 30.2 | 44.8 | 77.2 | 125.6 | |||
| Reserve Money | 289.7 | 281.6 | 306.7 | 323.6 | 335.6 | 416.4 | 488.4 | |||
| of which: Currency Outside Banks | 206.9 | 200.0 | 219.8 | 256.4 | 275.9 | 344.7 | 416.7 | |||
| Government Deposits | 32.0 | 30.3 | 28.9 | 5.4 | 11.8 | 22.1 | 32.7 | |||
| Counterpart Funds | — | 17.1 | 35.9 | 1.3 | 9.5 | 26.0 | 32.3 | |||
| Foreign Liabilities | 70.0 | 84.1 | 89.1 | 87.9 | 106.8 | 97.1 | 133.7 | |||
| Other Items (Net) | 15.3 | 18.5 | 31.5 | 9.5 | -0.8 | -1.3 | 2.7 | |||
| Commercial Banks | ||||||||||
| Reserves | 52.9 | 57.1 | 67.6 | 65.4 | 60.8 | 71.3 | 89.7 | |||
| Foreign Assets | 27.3 | 36.3 | 27.3 | 31.6 | 28.5 | 30.4 | 65.4 | |||
| Claims on Government | 23.1 | 31.2 | 51.1 | 126.9 | 151.5 | 207.1 | 272.3 | |||
| Claims on Private Sector | 208.4 | 245.0 | 248.0 | 260.3 | 279.3 | 308.0 | 323.1 | |||
| Claims on Specialized Banks | — | — | — | 18.0 | 22.9 | 32.9 | 43.4 | |||
| Demand Deposits | 148.9 | 163.5 | 165.3 | 197.7 | 166.5 | 170.7 | 198.8 | |||
| Time and Savings Deposits | 68.3 | 84.2 | 79.3 | 86.0 | 134.7 | 172.9 | 179.2 | |||
| Government Deposits | 29.2 | 35.5 | 48.5 | 70.9 | 48.2 | 59.2 | 96.2 | |||
| Counterpart Funds | 5.8 | 9.2 | 17.9 | 47.6 | 58.3 | 75.5 | 76.5 | |||
| Foreign Liabilities | 4.4 | 7.8 | 5.8 | 11.3 | 34.6 | 29.2 | 59.7 | |||
| Credit from Central Bank | 20.5 | 31.1 | 31.3 | 25.9 | 39.6 | 70.8 | 128.5 | |||
| Other Items (Net) | 34.5 | 38.3 | 45.7 | 62.7 | 61.1 | 71.4 | 55.0 | |||
| Post Office: | ||||||||||
| Savings Deposits | 34.8 | 38.6 | 40.6 | 43.4 | 51.6 | 59.2 | 68.3 | |||
| Monetary Survey | ||||||||||
| Foreign Assets (Net) | 96.1 | 67.6 | 52.9 | 27.2 | -29.7 | -28.8 | -44.3 | |||
| Domestic Credit | 457.3 | 532.8 | 610.2 | 677.0 | 792.0 | 951.0 | 1,064.7 | |||
| Claims on Government (Net) | 211.0 | 235.1 | 301.2 | 340.6 | 395.8 | 524.1 | 610.8 | |||
| Claims on Private Sector | 217.4 | 251.4 | 255.8 | 262.3 | 291.1 | 317.1 | 329.1 | |||
| Claims on Specialized Banks | 28.9 | 46.3 | 53.2 | 74.1 | 105.1 | 109.8 | 124.8 | |||
| Money | 384.8 | 389.7 | 404.8 | 455.4 | 442.8 | 515.7 | 615.7 | |||
| Quasi-Money | 104.9 | 123.7 | 120.7 | 129.5 | 186.4 | 232.6 | 247.7 | |||
| Counterpart Funds | 5.8 | 26.3 | 53.8 | 48.9 | 67.8 | 101.5 | 108.8 | |||
| Other Items (Net) | 57.9 | 60.7 | 83.9 | 70.3 | 65.4 | 72.4 | 48.2 | |||
International Financial Statistics, published monthly by the International Monetary Fund.
APPENDIX
Financing of Public Sector by Each of Five Commercial Banks Beginning July 1, 196415
I. National Bank of Egypt
The companies affiliated to the organizations attached to
The Ministry of Agriculture;
The Ministry of Agrarian Reform and Land Reclamation;
The Ministry of Communications and the Ministry of Transport;
The Ministry of War.
The commercial operations of
The Suez Canal Authority;
The Railway Authority and the Telecommunications Authority;
The Organization for Military Factories and the Organization for Aviation Factories.
The operations relating to surplus agricultural crops and all other operations entrusted to the National Bank by the Ministry of Supply.
II. Bank Misr
The companies affiliated to
The Egyptian Public Organization for Spinning and Weaving, attached to the Ministry of Light Industry.
III. Bank of Alexandria
The companies affiliated to the organizations attached to the Ministry of Industry (with the exception of the Egyptian Public Organization for Spinning and Weaving);
The commercial operations of the Egyptian Public Organization for Petroleum, attached to the Ministry of Mining and Petroleum.
IV. Bank of Cairo
The companies affiliated to
The Egyptian Public Organization for Trade, attached to the Ministry of Economy and Foreign Trade;
The organizations attached to the Ministry of Housing and Public Utilities;
The organizations attached to the Ministry of Information and the Ministry of Tourism and Antiquities.
V. Bank of Port Said
The companies affiliated to the organizations attached to
The Ministry of Health;
The Ministry of Supply and Internal Trade.
The commercial operations of the Egyptian Public Organization for Pharmaceuticals, attached to the Ministry of Health.
Monnaie et banques dans la République arabe unie
Résumé
Les statistiques monétaires figurant aux International Financial Statistics (I.F.S.), publication mensuelle du F.M.I., supposent pour chaque pays 1) qu'il y ait un système monétaire en dehors du secteur public et distinct des autres institutions fiancières, 2) qu'il existe une distinction utile entre le secteur extérieur et le secteur intérieur, 3) qu'une distinction utile puisse être établie, dans le cadre du secteur intérieur, entre le secteur public et le secteur privé, et 4) que le fonctionnement du systéme monétaire puisse être déduit des comptes consolidés des autorités monétaires et de ceux des banques commerciales.
Au cours des dix dernières années, plusieurs changements importants ont eu lieu dans l'économie de la République arabe unie (R.A.U.); ils ont abouti á la nationalisation des banques, des institutions financières et de l'industrie, et à la mise sous le contrôle complet de l'Etat de toutes les principales activités économiques du pays. Dans le domaine bancaire, d'autres changements importants sont intervenus. Une nouvelle banque centrale a repris certaines des fonctions de l'importante Banque Nationale, qui est devenue une simple banque commerciale; plusieurs fusions ont réduit à cinq le nombre des banques commerciales, qui ont été chargées de la responsabilité exclusive d'assurer le financement de branches particuliéres du secteur public; en outre, le rôle de l'Etat dans les banques spécialisés a été élargi, notamment dans l'importante banque agricole.
Cet article examine en détail les changements intervenus depuis 1957 dans l'organisation économique de la R.A.U. L'auteur considère ensuite dans quelle mesure les données disponibles permettent de conserver pour ce pays les distinctions utiles qu'établissent les I.F.S. II montre que les tâches les plus difficiles sont de définir les limites du secteur public et, en particulier, de distinguer les aspects publics et les aspects non publics du groupe d'organismes de la R.A.U. dits “entreprises d'Etat”. L'article donne les raisons de la façon dont les I.F.S. traitent en fait ces questions.
Moneda y banca en la República Arabe Unida
Resumen
Las estadísticas monetarias que aparecen en International Financial Statistics (IFS), publicación mensual del Fondo Monetario International, presuponen en cada país (1) la existencia de un sistema monetario, fuera del sector público y distinto de otras instituciones financieras, (2) que es útil distinguir el sector externo del sector interno, (3) que dentro del sector interno es útil distinguir entre el sector público y el sector privado, y (4) que el funcionamiento del sistema monetario puede deducirse de las cuentas consolidadas de las autoridades monetarias y de los bancos comerciales que lo componen.
Durante la última década se han producido cambios de gran importancia en la economía de la República Arabe Unida (R.A.U.). Como resultado de la nacionalización de la banca, instituciones financieras e industrias, el Gobierno ha ido asumiendo mayor dominio sobre toda la actividad económica del país. En la banca también se han introducido reformas substanciales. Creóse un nuevo banco central de lo que fuera el extenso Banco Nacional, quedando éste convertido en un banco comercial; al sistema de banca comercial, reducido a cinco bancos en virtud de fusiones, se le atribuyó de modo exclusivo la función de financiar segmentos específicos del sector público; y se amplió el cometido del Gobierno en los bancos especializados, particularmente en el banco agropecuario, con su gran red de sucursales.
En este artículo se examinan detalladamente los cambios ocurridos desde 1957 en la organización económica de la República Arabe Unida. Considera luego la medida en que la clasificación de sectores ahora vigente en ese país se asemeja a la adoptada en IFS. Es evidente que la tarea más, difícil en la elaboratión de estadísticas monetarias es la de demarcar los límites del sector público y, en particular, distinguir, dentro de las empresas en él incluidas, aquellas motivadas por consideraciones fiscales o sociales y las motivadas por fines de lucro. En la R. A. U. este problema se presenta en el grupo de “Empresas Públicas”. En el artículo se aducen las razones del tratamiento dado en IFS a los componentes de ese grupo.
In the tables throughout this issue, and in the English text of the papers
Dots (…) indicate that data are not available;
A dash (—) indicates that the figure is zero or less than half the final digit shown, or that the item does not exist;
A single dot (.) indicates decimals;
A comma (,) separates thousands and millions;
“Billion” means a thousand million;
A hyphen (-) is used between years or months (e.g., 1955–58 or January-October) to indicate a total of the years or months inclusive of the beginning and ending years or months;
A stroke (/) is used between years (e.g., 1962/63) to indicate a fiscal year or a crop year.
PUBLICATIONS BY THE FUND
New Subscription Rates for University Libraries, Faculty Members, and Students
The Fund publishes four periodicals by subscription:
Balance of Payments Yearbook
Direction of Trade
International Financial Statistics
Staff Papers
Normal annual subscription rates for these periodicals are $7.50, $10, $10, and $6, respectively.
University libraries, university faculty members, and university students may now subscribe to any one of the four at $3 a year, or to all four at $10 a year.
Address correspondence to
The Secretary
International Monetary Fund
19th and H Streets, N.W.
Washington, D.C. 20431
Mr. Sánchiz, Assistant Chief, Financial Statistics Division, Bureau of Statistics, Research and Statistics Department, is a graduate of the University of Maryland. Since joining the Fund staff in 1947, he has specialized in monetary statistics. Previously, he was Assistant Director of Statistics and Census of Panama and a member of the Economic and Fiscal Commission of the Government of Panama.
This paper originated as a discussion of the statistical problems presented to the compilers of the International Monetary Fund's publication, International Financial Statistics, by the changes in the monetary system of the United Arab Republic.
Law No. 57 of May 1951.
Law No. 163 of July 13, 1957.
Law No. 250 of July 19, 1960, amended by Law No. 277 of November 7, 1960.
Law No. 22 of January 15, 1957.
Law No. 163 of July 13, 1957.
Laws No. 39 and 40 of February 11, 1960.
Laws No. 117, 118, and 119 of July 20, 1961.
Law No. 4 of January 2, 1962.
Law No. 105 of March 21, 1964.
Equivalent in other countries to departments, provinces, etc.
Presidential Decree No. 1899 of December 16, 1961.
Vol. III, No. 4, 1963, pp. 371–93.
Vol. IV, No. 2, 1964, pp. 192–208. A two-page summary of the same table has also been published in the Economic Bulletin of the National Bank of Egypt.
See Central Bank of Egypt, Economic Review, 1964, p. 163, and National Bank of Egypt, Economic Bulletin, 1964, pp. 128–30.