Total banking assets increased by 0.8%

«Central»: government deposits rise 13 billion dirhams within a month

Total bank deposits rose 0.3% to 1915.1 billion dirhams at the end of July 2021. Archive

The report on monetary and banking developments for the month of July, issued by the Central Bank, showed that government deposits in banks increased during July 2021 by 13 billion dirhams, to reach 294.6 billion dirhams, compared to 281.6 billion dirhams at the end of the previous June.

The figures showed that total banking assets rose by 0.8% from three trillion and 208 billion and 800 million dirhams at the end of June 2021 to three trillion and 233 billion and 400 million dirhams at the end of July 2021.

bank credit

Total bank credit decreased by 0.05% from 1769.4 billion dirhams at the end of June 2021 to 1768.6 billion dirhams at the end of July 2021, as a result of a 0.1% decline in domestic credit, despite a 0.3% increase in foreign credit.

The decline in domestic credit is attributed to a decline of 0.4%, 0.2%, and 0.7% in each of the credit granted to the government sector, the credit granted to the private sector, and the credit granted to non-bank financial institutions, respectively, compared to the increase in credit granted to the public sector ( government-related entities) by 0.8%.

total deposits

Total bank deposits increased by 0.3% from 1908.6 billion dirhams at the end of June 2021 to 1915.1 billion dirhams at the end of July 2021, as a result of a 0.1% increase in resident deposits, and a 2.3% increase in non-resident deposits.

Residents’ deposits increased due to a 3.5% increase in government sector deposits, despite a decrease in public sector deposits (government-related entities), in private sector deposits, as well as in deposits of non-bank financial institutions, by 2% and 0.2%. and 4.4%, respectively.

monetary base

In turn, the monetary base decreased by 1.4%, from 443.1 billion dirhams at the end of June 2021 to 436.9 billion dirhams at the end of July 2021, as a result of a decrease of 1.2% and 44.8% in issued cash, current accounts, and overnight deposits for banks. and other financial institutions, respectively, despite the increase in the reserve account, certificates of deposit and cash bills by 29.3% and 4.1%, respectively.

The money supply “M1” decreased by 0.8% from 659.5 billion dirhams at the end of June 2021 to 653.9 billion dirhams at the end of July of the same year, while the money supply “M2” decreased by 0.7% from 1488.5 billion dirhams at the end of June 2021 to 1477.9 billion dirhams at the end of July.

The money supply “M3” increased by 0.1% from 1772.6 billion dirhams at the end of June 2021 to 1775 billion dirhams at the end of July 2021.

Adoption of the Virtual Asset Regulatory Framework

The National Committee for Combating Money Laundering and Combating the Financing of Terrorism and the Financing of Illegal Organizations held its eighth meeting for the year 2021, headed by the Governor of the Central Bank and Chairman of the Committee, Khaled Muhammad Balama, and in the presence of the Minister of State, Ahmed Ali Al-Sayegh.

During the meeting, the committee announced its adoption of the framework for regulating virtual assets in the country according to the approved model from the perspective of measures to combat money laundering and combating terrorist financing, in addition to distributing roles and powers between the Central Bank and the Securities and Commodities Authority.

This framework is an initial step towards a more comprehensive regulation, as it meets the recommendations and requirements of the Financial Action Task Force (FATF) No. 15, and ensures protection for the financial system and investors from the risks of money laundering and terrorist financing.

The committee also adopted a guide for the government sector on the implementation of targeted financial penalties, the procedures and the role of the concerned authorities in the country with regard to their implementation.

Balama said, "The committee is working on analyzing the gaps in coordination with the Executive Office to Combat Money Laundering and Combating the Financing of Terrorism, and launching several projects and initiatives to protect the infrastructure of the UAE in the face of money laundering crimes and combating terrorist financing, in addition to strengthening the efforts of the bodies represented in the National Committee, This will contribute to raising the status of the state and its pioneering role in combating money laundering and combating the financing of terrorism.

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