In June 2024, bank deposits in the Democratic Republic of the Congo (DRC) experienced a significant increase, reaching 13.4 billion USD. This 4.1% rise compared to the previous month, reported by the Central Bank of Congo, reflects a contrasting dynamic between the different currencies used in the country. [1]

A predominance of foreign currency deposits

Deposits in US dollars increased by 5.3%, while those in Congolese Francs (CDF) decreased by 7.0%. This trend highlights the predominance of foreign currency deposits, which account for 90.9% of total bank deposits, compared to only 9.1% for deposits in the national currency. This monetary duality, where the US dollar dominates transactions, is a notable feature of the Congolese financial system.

The preference for foreign currencies, particularly the US dollar, also reflects a perception of stability and security among depositors. This situation highlights the challenges the DRC faces in strengthening confidence in its national currency and stabilizing its economy. [2]

Distribution of deposits by sectors and regions

Bank deposits mainly come from private companies, households, and public enterprises, representing 34.2%, 32.6%, and 11.0% of the total, respectively. Small and medium-sized enterprises, non-profit institutions (NPIs), and public administration also contribute significantly. This diversified distribution of deposits by sector shows the commitment of various economic actors in the banking system. It also indicates a broadened deposit base that could support more inclusive and resilient economic growth across the country.

Kinshasa, the capital, remains the main center for collecting bank deposits, with 66.74% of the national total. The provinces of Haut-Katanga, Lualaba, North Kivu, South Kivu, and Kongo Central represent 20.16%, 4.18%, 2.87%, 1.52%, and 1.55% of deposits, respectively. This geographical concentration of bank deposits reflects the intense economic activity in these regions. The predominance of Kinshasa and other key provinces in deposit collection highlights regional disparities in terms of economic development. This underscores the need for targeted policies to encourage a more balanced distribution of economic and financial activities across the country. [3]

Growth of bank loans

In parallel, bank loans also recorded remarkable growth, reaching 8.2 billion USD in June 2024, an increase of 5.5% compared to 7.8 billion USD in May 2024. This growth is mainly due to loans granted to private companies, households, and public enterprises. Dollar loans increased by 6.6%, while those in Congolese Francs slightly decreased by 0.1%.

This increase in bank loans reflects a heightened demand for financing investment projects and consumption needs. It also indicates an improvement in credit access for different segments of the population, which could further stimulate economic activity.

Increased confidence in the banking system

This increase in deposits and bank loans in the DRC is a sign of increased confidence among economic players in the country's banking system. The continuation of this trend could have significant repercussions on the economic development of the DRC in the coming months. Congolese banks thus have an opportunity to continue innovating and offering new investment services to meet the financing needs of businesses and individuals.

The growing confidence in the banking system is also the result of ongoing reforms and regulatory efforts aimed at enhancing transparency and stability in the financial sector. These initiatives are essential for attracting more deposits and credits, and for supporting sustainable economic growth.