Gross banks’ assets exceed Dh3.63 trillion by end-November 2022: Central Bank

The Central Bank of the United Arab Emirates (CBUAE) on Monday announced that g ross banks’ assets, including bankers’ acceptances, increased by 0.7 percent, rising from Dh3.615 trillion at the end of October 2022 to Dh3.639 trillion at the end of November 2022.

According to figures published in CBUAE's November summary report on monetary and banking developments, gross credit rose by 0.5 per cent from around Dh1.878 trillion at the end of October 2022 to around Dh1.887 trillion at the end of November 2022.

Gross credit increased due to 0.8 per cent rise in domestic credit, overriding the 1.7 per cent reduction in foreign credit. Domestic credit grew because of 0.4 per cent, two per cent and 0.7 per cent climbs in credit to the government sector, public sector (government related entities) and private sector, correspondingly; overriding the reduction in credit to the non-banking financial institutions by 3.8 per cent.

Total bank deposits increased by 1.6 per cent, mounting from around Dh2.204 trillion at the end of October 2022 to some Dh2.239 trillion at the end of November 2022. The growth was due to the rise in resident deposits by 2.5 per cent, overshadowing the reduction in non-resident deposits by 6.2 per cent. The deposits increased owing to 0.6 per cent, 9.8 per cent, two per cent and 1.3 per cent expansions in government sector deposits, public sector (government related entities) deposits, private sector deposits and non-banking financial institutions deposits, respectively.

The report also revealed that the monetary base expanded by 3.7 per cent climbing from Dh468.8 billion at the end of October 2022 to Dh486.0 billion at the end of November 2022. The main drivers of this expansion were increases in currency issued and Banks & OFCs’ current accounts & overnight deposits of banks at CBUAE by 4.8 per cent and 58.3 percent, respectively. Whereas, reserve account and certificates of deposit and monetary bills decreased by 23.7 per cent and 1.9 per cent, individually.

The Money Supply aggregate M1 increased by 0.9 percent (m-o-m) reaching Dh729.7 billion at the end of November 2022. This was due to Dh1.7 billion and Dh4.9 billion rise in currency in circulation outside banks and in monetary deposits, respectively.

The Money Supply aggregate M2 ascended by three percent, from around Dh1.629 trillion at the end of October 2022 to around Dh1.678 trillion at the end of November 2022. M2 swelled due to an improved M1 and an increase of Dh42.1billion in quasi-monetary deposits.

The Money Supply aggregate M3 also rose by 2.5 per cent, from around Dh2.058 trillion at the end of October 2022 to around Dh2.110 trillion at the end of November 2022. M3 grew because of an increased M2 and Dh2.7 billion expansion in government deposits. — Wam

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