The liquid assets of the UAE's banking sector reached AED801.52 billion by the end of the second quarter of 2024, marking a significant 20.2% year-on-year increase, according to the Central Bank of the UAE (CBUAE).
The Core Financial Soundness Indicators report released by CBUAE today highlighted this growth, which rose by AED135 billion from AED666.6 billion in Q2 2023.
On a quarter-on-quarter basis, liquid assets grew by 2%, adding AED14.9 billion compared to AED786.6 billion in Q1 2024. The report emphasized that these liquid assets represented 18.9% of the banking sector’s total assets, valued at AED4.244 trillion at the end of Q2 2024.
The banking sector remains well-capitalized, with the capital adequacy ratio reaching 18.3% at the end of Q2 2024, surpassing the 18% recorded in Q1 2024. This figure exceeds the Central Bank's regulatory minimum of 13%, in line with Basel III guidelines. The Tier 1 capital ratio also saw a rise, standing at 17%, while the Common Equity Tier 1 capital ratio increased to 15.3%.
CBUAE's report underscores the robust financial health of the UAE’s banking system, providing confidence in the sector’s stability and its ability to support the nation's economy. With these strong financial indicators, the UAE banking sector continues to maintain its position as a key player in the region.
News Source: Emirates News Agency
