Gross banks’ assets in the country surpassed the AED4.2 trillion mark by the end February 2024, for the first time in its history, according to the latest statistics from the Central Bank of the United Arab Emirates (CBUAE).
The bank in its monetary & banking developments for February 2024, reported an increase in total banking assets, including bank acceptance certificates, on an annual basis by about AED450.2 billion, with growth exceeding 12 percent compared to about AED3.748 trillion during February 2023.
The total banking assets rose on a monthly basis by 2.2 percent to AED4.198 trillion at the end of February 2024, compared to about AED4.109 trillion in January.
The gross credit grew by 0.9 percent from AED1.996 trillion at the end of January 2024 to AED2.014 trillion at the end of February 2024. The gross credit rose due to an increase in domestic credit by 1.1 percent, overshadowing a lessening of foreign credit by 0.6 percent. The domestic credit rose because of 5.5 percent, 0.2 percent, 0.6 percent and 1.7 percent growth in credit to the government sector, the public sector (government related entities), the private sector and the non-banking financial institutions, respectively.
According to the CBUAE report, total bank deposits climbed by 2.7 percent, increasing from AED2.540 trillion at the end of January 2024 to AED2.608 trillion at the end of February 2024. The rise in total bank deposits was due to the growth in resident deposits by 2.5 percent and in non-resident deposits by 5.0 percent.
In February 2024, resident deposits grew due to a surge in government-related entity deposits by 18.4% and private sector deposits by 2.0%. The monetary base expanded by 2.7%, reaching AED688.7 billion, driven by increased currency issuance, reserve accounts, and monetary bills. Money supply M1 rose by 2.0%, reaching AED847.0 billion, attributed to higher currency circulation and monetary deposits. M2 increased by 3.8%, reaching AED2.105 trillion, driven by elevated M1 and quasi-monetary deposits. M3 also rose by 2.3%, reaching AED2.535 trillion, primarily due to an increase in M2 despite a decline in government deposits.
News Source: Emirates News Agency
