Data issued by the Central Bank revealed yesterday that government deposits in banks recorded at the end of February, 267.4 billion dirhams, up from 262.9 billion dirhams at the end of January 2020, with a monthly increase of 4.5 billion dirhams, and a monthly growth of 1.7%.
Government deposits constitute one of the most important components of liquidity in the banking sector, and contribute to supporting its ability to lend and confront crises.
The banking expert, Sheikha Al-Ali, said that "national banks enjoy almost all government deposits, which constitute a wall to prevent them in the face of crises, and provide sufficient liquidity to grant loans", explaining that they also reflect cash surpluses in government revenues that are kept in the form of demand deposits It can be withdrawn when needed and in times of crisis.
Al-Ali added that «the banking sector in the UAE is one of the most important sectors that support the economy, and it has significant government support, by ensuring that government deposits are directed first and foremost, in order to maintain large levels of liquidity, along with strong credit ratings that contribute to creating a global reputation, and this is what we see when None of them issue sukuk or bonds. ”
To that, the data of the «Central» indicated that banks operating in the state provided loans and bank financing during February last with a value of 8.6 billion dirhams, including about three billion dirhams for the trade and industry sectors, bringing the total credit portfolio in the banking sector at the end of the month to one trillion and 745.5 billion dirhams, Compared to one trillion and 736.9 billion dirhams.
The total assets of the banking sector increased at the end of February 2020 to three trillion and 95 billion dirhams, an increase of 15 billion dirhams from the previous January.
The monetary base of the UAE increased by the end of February, to 415.6 billion dirhams, compared to 408.5 billion dirhams at the end of January.
According to the data, the total assets of the central bank of assets denominated in foreign currency recorded at the end of February 406 billion dirhams, compared to 400 billion dirhams at the end of January.
The figures showed that the total assets of the “central” denominated in dirhams increased during last February, to reach 457 billion dirhams, compared to
At 447 billion dirhams at the end of the previous January, an increase of 10 billion dirhams, equivalent to a monthly growth of 2.2%.
406
Billions of dirhams of foreign assets owned by the Central Bank.