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UAE banks’ total assets ‘to reach $990 billion by end-November 2022’

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Total bank assets in the UAE, including banker’s acceptances, rose marginally by 0.7%, from AED 3.62 trillion at end-October 2022 to AED 3.64 trillion (USD 990 billion) at end-November 2022.

Total credit grew by 0.5% from around AED 1.88 trillion at end-October 2022 to around AED 1.89 trillion at the end of 2022, according to data published in the November Monetary and Banking Sector Development Summary Report by the Central Bank of the UAE (CBUAE) November 2022, the report said.

Total credit rose as a 0.8 percent increase in domestic credit outweighed a 1.7 percent decline in foreign credit. Domestic credit grew as credit to the government sector, the public sector (government-related entities) and the private sector increased by 0.4%, 2.0% and 0.7% respectively; more than a 3.8% decline in credit to non-bank financial institutions.

Bank savings

Total bank deposits increased by 1.6%, from approximately AED 2.204 trillion at the end of October 2022 to approximately AED 2.239 trillion at the end of November 2022. The increase was due to a 2.5% rise in resident deposits, which more than outweighed a 6.2% drop in non-resident deposits. Deposits rose as government sector deposits, public sector (government-related entity) deposits, private sector deposits and non-bank financial institution deposits rose 0.6 percent, 9.8 percent, 2.0 percent and 1.3 percent, respectively.

The report also showed that the monetary base increased by 3.7%, from AED468.8 billion at the end of October 2022 to AED486 billion at the end of November 2022. The main drivers of this expansion are the issuance of money and the increase in banks and banks. OFC’s sight accounts and bank overnight deposits in CBUAE increased by 4.8% and 58.3% respectively. Reserve accounts and certificates of deposit and currency notes fell 23.7 percent and 1.9 percent, respectively.

Total money supply M1 increased by 0.9% month-on-month to AED729.7 billion by the end of November 2022. This was due to an increase of AED1.7 billion and AED4.9 billion in currency in circulation and currency deposits outside banks, respectively.

Total Money Supply M2

The total money supply M2 increased by 3.0%, from approximately AED 16.29 trillion at the end of October 2022 to approximately AED 16.78 trillion at the end of November 2022. M2 inflates quasi-monetary deposits due to improvement in M1 and increase of AED 42.1 billion.

The total money supply M3 also increased by 2.5%, from approximately AED 2.058 trillion at end-October 2022 to approximately AED 2.110 trillion at end-November 2022. M3 growth due to M2 increase and AED2.7 billion expansion of government deposits — trade arab news agency

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