Central Bank: Banking sector assets exceed 4.2 trillion dirhams for the first time in its history
Abu Dhabi, April 29 / WAM / The total assets of the banking sector in the country exceeded the barrier of 4.2 trillion dirhams at the end of last February, for the first time in its history, according to the latest statistics of the UAE Central Bank.
In the Monetary and Banking Developments Report for February 2024, the Central Bank revealed an increase in total banking assets, including bank acceptance certificates, on an annual basis by about 450.2 billion dirhams, a growth of more than 12%, compared to about 3.748 trillion dirhams during February 2023.
He stated that total banking assets increased on a monthly basis by 2.2% to 4.198 trillion dirhams at the end of last February, compared to about 4.109 trillion dirhams in the previous January.
The Central Bank stated that total bank credit increased by 0.9% from 1.996 trillion dirhams at the end of last January to 2.014 trillion dirhams at the end of February 2024, as a result of an increase in domestic credit by 1.1%.
He attributed the increase in domestic credit to a growth of 5.5%, 0.2%, 0.6% and 1.7% in credit granted to the government sector, the public sector / government-related entities / the private sector and non-banking financial institutions, respectively.
Total bank deposits recorded an increase of 2.7%, from 2.540 trillion dirhams at the end of January to 2.608 trillion dirhams at the end of last February, as a result of the increase in resident deposits by 2.5% and non-resident deposits by 5%.
The Central Bank attributed the expansion of residents’ deposits to an increase in public sector deposits by 18.4%, and private sector deposits by 2%.
The monetary base expanded by 2.7% from 670.9 billion dirhams at the end of last January to 688.7 billion dirhams at the end of February 2024, as a result of an increase in the exported currency by 3.1%, the reserve account by 1.2%, and cash bills and Islamic certificates of deposit by 6.7%, exceeding the decrease in the accounts. Current deposits of banks and other financial institutions and overnight deposits at a rate of 4%.
The report explained that the total money supply “M1” – which includes cash in circulation outside banks + cash deposits (current accounts and demand accounts with banks) – increased by 2% from 830 billion dirhams at the end of January to 847 billion dirhams at the end of February, and attributed this to The value of currency in circulation outside banks increased by 3.3 billion dirhams, in addition to an increase in cash deposits by 13.7 billion dirhams.
He pointed out that the total money supply “M2” – which includes “M1” + quasi-cash deposits, “time deposits and savings deposits of residents in dirhams, and deposits of residents in foreign currencies” – increased by 3.8% from 2.028 trillion dirhams at the end of last January to 2.105 trillion dirhams at the end of February. 2024, with the M1 money supply rising along with a rise of 59.4 billion dirhams in quasi-cash deposits.
The total money supply “M3” – which includes “M2” + government deposits with banks operating in the country as well as with the Central Bank – increased by 2.3% from 2.478 trillion dirhams at the end of last January to 2.535 trillion dirhams at the end of February, and this increase is mainly due to… To increase the money supply “M2”.
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