In an indicator of great confidence in the UAE banking sector among customers
Individual deposits in banks grow by 5.3% and increase by 26 billion dirhams in 2021
«Central»: the cumulative balance of deposits of individuals in banks recorded 520 billion dirhams at the end of 2021. Archive
Amjad Nasr: "Increasing bank deposits in general means an increase in the banks' ability to finance, as a result of the abundance of liquidity."
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The latest data issued by the Central Bank of the Emirates showed that individuals in the UAE deposited 26 billion dirhams in banks during 2021, bringing their total deposits in the banking sector to 520 billion dirhams, which constitutes 26% of the total bank deposits amounting to one trillion dirhams. and 996 billion dirhams.
The cumulative balance of individual deposits in banks at the end of last year amounted to 520 billion dirhams, compared to 494 billion dirhams at the end of 2020, with an annual increase of 26 billion dirhams, equivalent to an annual growth of 5.3%.
These data also revealed that national banks account for 85% of individuals' deposits.
high security
The banking expert, Amjad Nasr, told "Emirates Today", "A large percentage of individuals are still cautious in directing their savings towards alternative investment sectors such as real estate or money markets, and prefer to keep them in banks, even if the interest rate on them is low, given the This is offset by a high degree of safety, and the absence of risks to the capital.
great confidence
Nasr added that "the last year witnessed the return of the turnover of economic activities, after the repercussions of the (Coronavirus) pandemic crisis receded, and bank deposits rose significantly, including those of individuals."
Nasr pointed out that the banking sector in the UAE is the largest in the region in terms of the number of banks operating in it, as well as the level of assets, and enjoys great confidence among dealers from within the country, citizens and non-citizens, or from outside the country, and the largest proportion of individuals They prefer to keep their savings in national banks, because of its easy services around the clock, especially the provision of Arab employees who are easy to communicate with, and understand services and contracts in a clear manner.
Funding and Liquidity
Nasr stressed that the increase in bank deposits in general, means an increase in the ability of banks to finance, as a result of the abundance of liquidity, as banks depend on deposits to lend and finance their operating activities, pointing out that income levels in the UAE allow for a surplus of many families who prefer to save and keep in the banks they deal with.
powerful controls
He pointed out that the Central Bank sets strong controls for banks, with regard to bank deposits, through the “know your customer” initiative, so we find that the reputation of the banking sector in the UAE is global, and that banks enjoy very great confidence, both in terms of services provided or at the level of deposit guarantee, maintaining the privacy of the customer’s data, while at the same time observing all controls related to combating money laundering, and other legal matters.
• Individual deposits constitute 26% of the total bank deposits amounting to 1.996 trillion dirhams.
• National banks account for 85% of individuals' deposits.
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