The Central Bank of the UAE (CBUAE) has reported a 0.7% increase in gross banks’ assets, including bankers’ acceptances, reaching AED4,378.0 billion by the end of August 2024, compared to AED4,348.6 billion in July 2024.
In its latest Monetary and Banking Developments report, the CBUAE highlighted a 0.5% rise in gross credit, amounting to AED2,112.9 billion in August 2024. This growth was attributed to a 0.5% increase in domestic credit and a 0.8% rise in foreign credit. Private sector credit rose by 0.8%, offsetting reductions in credit to the public sector (-0.3%) and non-banking financial institutions (-3.0%). Credit to the government sector remained unchanged.
Bank deposits also experienced modest growth, increasing by 0.2% to AED2,740.5 billion. Resident deposits rose by 0.8%, driven by increases in government sector deposits (2.6%), private sector deposits (1.2%), and non-banking financial institution deposits (4.2%). This growth offset a 6.4% decline in non-resident deposits.
The report showed mixed trends in the money supply aggregates. While M1 declined by 0.1% to AED888.0 billion due to reductions in currency in circulation and monetary deposits, M2 rose by 0.2% to AED2,211.1 billion, supported by a AED6.5 billion increase in quasi-monetary deposits. M3 grew by 0.8%, reaching AED2,696.3 billion, driven by higher government deposits and M2 expansion.
The monetary base expanded by 2.3% to AED734.9 billion, primarily due to increases in the reserve account (6.2%), currency issuance (0.6%), and monetary bills & Islamic certificates of deposit (6.1%), despite a 10.2% decline in overnight deposits.
This comprehensive growth reflects the UAE's resilient banking sector and its continued contribution to the nation's economic stability.
News Source: Emirates News Agency
