2021 records the best indicators for the banking sector in the UAE in 6 years

Bank deposits recorded an increase of 112 billion dirhams.

Photography: Eric Arrasas

The banking sector in the UAE recorded, during 2021, its best performance in six years, as data issued yesterday by the Central Bank showed that the main indicators of the sector witnessed record growth, along with a significant increase in the level of banking assets, which amounted to 110 billion dirhams, in which the sector maintained a leading position. Banking sectors at the level of the Gulf region and Arab countries.

Bank deposits recorded an increase of 112 billion dirhams, and the country's monetary base increased by 57 billion dirhams.

In detail, the assets of the banking sector rose to reach 3.3 trillion dirhams at the end of last year, compared to 3.19 trillion dirhams, with an annual increase of 110 billion dirhams.

Bank deposits reached a new record level, approaching two trillion dirhams, specifically one trillion and 996.5 billion dirhams, compared to one trillion and 884.5 billion dirhams, with an annual increase of 112 billion dirhams.

The assets of the Central Bank, denominated in dirhams, amounted to 521.5 billion dirhams at the end of last year, compared to 470.5 billion dirhams at the end of 2020, an annual increase of 51 billion dirhams, equivalent to an annual growth of 10.8%.

The balance of certificates of deposit owned by banks and against which liquidity is maintained with the Central Bank at the end of last year amounted to 165 billion dirhams, compared to 129 billion dirhams at the end of 2020, an annual increase of 36 billion dirhams and a growth of 28%.

The Central Bank’s foreign assets increased by the end of December 2021 to reach 466.5 billion dirhams, compared to 388 billion dirhams at the end of 2020, with an annual increase of 78.5 billion dirhams equivalent to an annual growth of 20%.

The monetary base of the UAE increased to reach 484 billion dirhams at the end of last year, compared to 427 billion dirhams, with an annual increase of 57 billion dirhams, representing an annual growth of 13%.

The total deposits with the Central Bank at the end of last year amounted to 186 billion dirhams, while withdrawals amounted to 187 billion dirhams.

According to the data, the value of the checks that were cleared using their photocopies during the past year in full amounted to 1.1 trillion dirhams, for a total of 21.3 million checks.

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