Deposits exceed loans by 327 billion dirhams
The assets of the UAE banking sector amount to 3.62 trillion dirhams
The Central Bank attributed the increase in domestic credit to the increase in credit granted to the public and private sectors.
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The banking sector in the UAE continued to lead in the Gulf and Arab countries, as its assets at the end of last October amounted to 3.62 trillion dirhams, compared to 3.58 trillion at the end of the previous September, with a monthly growth of 0.9%. Bank deposits also recorded an increase of 18 billion dirhams, during the comparison period, to reach the end of October. The past amounted to two trillion and 205 billion dirhams, compared to two trillion and 187 billion at the end of the previous September, according to the Monetary and Banking Developments Report for October 2022.
The report indicated that total bank credit increased by 0.2%, from one trillion and 873 billion dirhams, to one trillion and 878 billion dirhams during the comparison period, as a result of the increase in domestic credit by 0.1% and foreign credit by 1.5%.
The Central Bank attributed the increase in domestic credit to the increase in credit granted to the public sector and the private sector by 0.7% and 0.1%, respectively.
According to the “Central” data, bank deposits continued to outperform loans at the end of last October, reaching 327 billion dirhams, reflecting the abundance of liquidity in banks and the financial solvency they enjoy, while at the same time attracting deposits with the support of the increase in interest rates for four consecutive times, until the end of October. Past.
The Central Bank requires banks not to exceed the value of their loan portfolio in terms of deposits, according to what is known as the (1:1) equation. However, over the past eight years, bank deposits have recorded a clear superiority over the total portfolio of banks.
The data indicated that the balance of certificates of deposit, which banks possess in exchange for liquidity maintained by the Central Bank, rose to 157 billion dirhams at the end of last October, compared to a balance of 146 billion at the end of the previous September, with a monthly increase of 11 billion dirhams.
According to the data, the total assets of the Central Bank at the end of last October amounted to 486 billion dirhams, compared to 484 billion at the end of September, with a monthly increase of two billion dirhams.
The “Central” report indicated that the “N1” money supply, which includes cash circulating outside banks in addition to cash deposits “current accounts and demand accounts with banks,” remained almost stable at around 723.1 billion dirhams at the end of last October, with an increase in cash circulating outside banks. 1.6 billion dirhams.
The money supply “N2”, which includes “N1”, in addition to quasi-cash deposits “time deposits and savings deposits for residents in dirhams and deposits for residents in foreign currencies”, decreased by 1%, from 1.645 trillion dirhams, to 1.629 trillion dirhams during the comparison period, as a result of the decrease in semi-deposits. cash.
The money supply “N3”, which includes “N2”, along with government deposits with banks operating in the country as well as with the Central Bank, increased by 0.5%, from 2.048 trillion dirhams, to 2.058 trillion dirhams, thanks to the increase in government deposits by 26.9 billion dirhams.
• 18 billion dirhams increase in bank deposits within a month
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