Recent inflows into foreign currency deposits could help banks expand credit in the near term. But Chaudhry’s assessment suggests that this support should not be treated as a lasting change in lending momentum. The key message is about how long the boost may continue, rather than a firm forecast of stronger credit growth.

The report links narrowing differentials with an expectation that domestic interest rates could move higher soon. It does not explain which differentials are being referred to, or provide a likely size or date for any rate increase. That leaves the outlook broad, without a specific timetable for banks or customers.

Consolidation across the banking industry is also expected to gather pace over the coming years, with larger banks seen as better placed to benefit. However, the supplied report does not identify any potential transactions or explain how individual lenders could be affected. It also gives no figures for the deposit inflows or their expected contribution to lending.