44.6 billion dirhams increase in government deposits within a month
The assets of the UAE banking sector reached 3.5 trillion dirhams by the end of July
Total bank deposits continued to outperform loans with a value of 275.6 billion dirhams.
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Amjad Nasr: “The increase in government deposits is due to the rise in oil prices, the diversification of fee collection, the increase in the number of companies and the increase in employment.”
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The Central Bank reported that total banking assets increased to 3.49 trillion dirhams at the end of last July, an increase on a monthly basis by 1.2%, compared to 3.449 trillion dirhams in June 2022.
In the monetary and banking developments report for the month of July, the Central Bank stated that banking assets rose on an annual basis by 7.95%, or the equivalent of 257 billion dirhams, compared to about 3.233 trillion dirhams in July 2021, while they increased by 5.09%, or the equivalent of 168.9 billion dirhams, during the seven The first months of this year compared to 3.321 trillion dirhams in December 2021.
Government deposits recorded a significant increase during the month of July alone, with a value of 44.6 billion dirhams, while total bank deposits continued to outperform loans with a value of 275.6 billion dirhams, reflecting strong levels of liquidity in banks.
This is according to data issued yesterday by the Central Bank, which showed in detail that the value of government deposits in banks amounted to 361.9 billion dirhams at the end of last July, compared to 317.3 billion at the end of the previous June, with a monthly growth of 14%.
More than 97% of government deposits are concentrated in national banks, and they are an important source of liquidity and their increase indicates the strong financial surpluses of government entities and entities.
The banking expert, Amjad Nasr, said that "there are several factors that contribute to the increase in government deposits in banks, including the significant rises in oil prices and the diversification and multiplicity of government fees resulting from the return of economic activity, the increase in the number of companies and the increase in employment, all of which contributed to the rise in revenues and surpluses. He added that there was also a clear increase in income from export and re-export.
Nasr added, "The increase in deposits in general is also due to the record interest rate hikes, which encouraged customers to pump their money into banks to take advantage of the high return, which is the highest in many years."
According to the Central Bank, the total bank deposits at the end of last July amounted to 2 trillion and 133 billion dirhams, compared to loans worth 1 trillion and 857.4 billion dirhams, a difference of 275.6 billion dirhams in favor of deposits.
The increase in bank deposits during the month of July amounted to 41 billion dirhams, reaching at the end of it 2 trillion and 133 billion dirhams, compared to 2 trillion and 92 billion dirhams at the end of the previous June, with a monthly growth of 2%.
And the “Central” indicated that total bank credit reached 1.857 trillion dirhams at the end of last July, a decrease on a monthly basis, by 0.5% compared to about 1.866 trillion dirhams, at the end of the previous June, as a result of a decrease in domestic credit by 0.7% compared to an increase of 1.6 % in foreign credit.
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