In an indicator that reflects the solvency and stability of the banking sector
The Central Bank: Bank deposits outperform loans by 191 billion dirhams
The Central Bank: Total banking assets rose to 3.344 trillion dirhams at the end of April 2022. Archive
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Bank deposits in state banks continued to outperform loans, bringing the difference between them to 191 billion dirhams in favor of deposits, which reflects the solvency and stability of the banking sector in the country, and enhances liquidity and ability to support the economy.
Data issued by the Central Bank revealed that total bank deposits rose at the end of April 2022 to reach two trillion and eight billion and 400 million dirhams, compared to “credit” of one trillion and 817 billion and 400 million dirhams.
Banking assets
In the monetary and banking developments report for last April, the Central Bank stated that total banking assets rose to 3.344 trillion dirhams at the end of April 2022, an increase of 0.3%, on a monthly basis, or the equivalent of 8.4 billion dirhams, compared to about 3.336 trillion dirhams in the previous month. March 2022.
The Central Bank revealed that banking assets rose on an annual basis by 5.54%, or 175.5 billion dirhams, compared to 3.169 trillion dirhams in April 2021.
bank credit
The “Central” report indicated that bank credit reached 1.817 trillion dirhams last April 2022, an increase on an annual basis by 3.07%, or 54.2 billion dirhams, compared to about 1.763 trillion dirhams in April 2021. Bank credit decreased on a monthly basis by 0.8 %, compared to about 1.831 trillion dirhams last March, as a result of a 1.1% decline in domestic credit, compared to a 1.9% increase in foreign credit.
total deposits
Total bank deposits rose on a monthly basis by 0.1% from 2.006 trillion dirhams at the end of last March to 2.008 trillion dirhams at the end of April 2022, as a result of a 14.8% increase in non-resident deposits, compared to a 1.6 percent decrease in resident deposits, while deposits on the An annual basis of 7%, or 131.1 billion dirhams, compared to 1.877 trillion dirhams in April 2021.
monetary base
In turn, the monetary base expanded by 1.2%, from 481 billion dirhams at the end of last March to 486.9 billion dirhams at the end of April 2022, as a result of an increase in issued cash and reserve account by 6.7% and 27.6%, respectively, compared to a decrease in current accounts and overnight deposits. One for banks and other financial institutions in the Central Bank, and certificates of deposit and cash bills at 16.6% and 3.8%, respectively.
Sector trust and reputation
The Central Bank of the Emirates obliges the banks not to exceed their loan portfolios the value of their deposits according to the formula (1:1). Nevertheless, the banks take into consideration more than what is required by the Central Bank’s instructions, with the support of the confidence of dealers who prefer to keep their money in the form of bank deposits, A safe option in light of the uncertainty in the global economy, and the rise in the interest rate contributes to attracting greater amounts of liquidity to the banking sector, in addition to the good reputation of UAE banks, government guarantees for deposits, and the best banking services.
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