The largest growth in bank deposits since 2015

The banking sector achieves the highest growth rates in 7 years

Bank lending maintained a growth rate of 5.5% on an annual basis by the end of last September.

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The year 2022 witnessed the highest growth rates of the banking sector in terms of assets, bank deposits and capital adequacy, since 2015, i.e. in seven years, according to the economic report issued by the Central Bank yesterday.

The Central Bank confirmed that total deposits in the UAE banking system rose at a strong pace of 12.6%, the highest since February 2015.

And he indicated that the total assets of the UAE banking system increased by 10.3% on an annual basis, to reach three trillion and 583 billion dirhams, by the end of last September, and the number of licensed banks in the country reached 60, including two banks operating through digital platforms, and they include 23 national banks, and 37 banks. foreigners, while the number of bank branches decreased to 580, which reflects the gradual digitization of the banking system in the UAE.

He pointed out that bank lending maintained a growth rate of 5.5% on an annual basis by the end of last September, with growth recorded across most of the main sub-categories in the retail sector, and domestic credit recorded a growth of 3.3%, driven by the private sector.

The “Central” added: “Lending to private companies recorded a growth of 3.8% on an annual basis, while loans to individuals increased by 7% on an annual basis, with growth recorded across the majority of the main sub-categories in the retail sector.”

He pointed out that lending to government-related entities rebounded in 2022, and foreign credit, which constitutes 11.6% of total loans, increased by 25% on an annual basis, driven by loans from foreign private companies.

The Central Bank stated that - according to the credit trends questionnaire for the third quarter - there was a continuation of the banks' desire to grant credit, which is evident through the strong growth in the demand for loans from commercial companies and families, as the questionnaire shows the strong recovery of the national economy, supported by the desire Financial institutions direct the increasing demand for credit to companies and individuals.

He stressed that the UAE banking system enjoys good capital levels, much higher than the minimum regulatory requirements, and that the total capital adequacy ratio reached 17.5% in the third quarter of this year, and the first-tier ratio of capital reached 16.3%, and the percentage of ordinary equity from The first part is 14.5%.

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