«Central»: 1.47 million deposits above one million dirhams in banks

According to data issued by the Central Bank, yesterday, on the classification of deposits in banks operating in the country at the end of the first half of this year, according to size, that one million and 472 thousand and 201 deposits worth more than AED 1 million.

The Central Bank added that the total of these deposits exceeds AED 1.7 trillion, reflecting the financial soundness of the banking sector, and its ability to meet the financing needs of various sectors, pointing out that the national banks account for more than 88% of bank deposits, while the share of foreign banks 12 %.

Million deposits

The banking expert, Ahmed Youssef, said that foreign banks are weaker than their domestic counterparts in terms of deposits, pointing out that foreign banks are committed to the currency of the mother country, whether they are dollars, euros or others, unlike the national banks that adopt the dirham in preparing their budgets. National and expatriate depositors, as well as the strength of the national economy and the strength of the banking sector, support the deposit orientation towards national banks.

Yousef said the accumulation of millions of deposits in banks is normal, being the safest investment vehicle in a volatile market in the world.

He explained that the interest rates on bank deposits currently range between 2.25 and 2.75% per annum, while the yields on bonds in case the depositor invested through the bank up to 5.5% per annum.

Return is acceptable

For her part, banking expert Sheikha Al-Ali said that banks offer a variety of investment products to attract holders of millions of deposits, and provide an acceptable return on these products up to 5%, such as bonds, so we find the appetite of investors.

She added that the national banks provide services and products that match the best international standards in addition to that they enjoy the confidence of customers thanks to strong government support to the banking sector and guarantee deposits, so we find the largest share of customer deposits are moving to it.