Central Bank’s total assets up 6.6% to Dhs470.5 billion in December - GulfToday

Central Bank’s total assets up 6.6% to Dhs470.5 billion in December

CBUAE

The deposits and current balances increased to around Dhs192 billion in December 2020 against Dhs150.93 billion in November.

The total assets of the Central Bank of the United Arab Emirates grew 6.6 per cent to Dhs470.5 billion by the end of December 2020, CBUAE latest statistics have showed.

The significant growth is driven by a rally in cash and bank balances to Dhs332.25 billion by the end of December from Dhs290.5 billion in November same year.

The deposits and current balances increased to around Dhs192 billion in December 2020 against Dhs150.93 billion in November.

According to the CBUAE’s figures, the value of other assets picked up from Dhs9.42 billion to Dhs11.78 billion during the reference period.

STRONG RETURN TO GROWTH: The Central Bank of the UAE has predicted a strong return to growth in Gross Domestic Product (GDP) for the UAE in 2021, noting the government continues to diversify the economy, provide strong infrastructure spending and encourage private investment both as a measure of growth and private employment.

“The UAE as a country is blessed with strong natural resources, as well as a government both willing and able to stimulate economic activity and a population comprised of both citizens and expatriates with strong determination and will to face challenges,” Abdulhamid M. Saeed Alahmadi, CBUAE Governor, said in a recent message where he recapped 2020 and spoke about the way ahead.

“In 2020, we have seen various geo-political issues being resolved and new trade and investment opportunities emerge, which were previously not available,” he added, inviting the business and banking community to take part in this new era to kick start the investment cycle, to expand credit appetites, help customers in need and forge a roadmap which is different from before.

“Banks and other financial institutions need to go back to the drawing board and redefine their strategies in a new world with redefined geo-political lines; a global economy that is rapidly digitalising, new trade maps and consumers that demand the best services,” he asserted.

“The Government of the UAE and the CBUAE are ready to provide assistance in all matters and we shall persist in watching business activity to ensure we continue to provide impetus to both existing and new businesses. Let us come together to redefine how we do business, and continue the successful journey of our country forward,” Alahmadi said, thanking the financial and business community for their resilience through 2020 and wishing them the very best for 2021.

He said, “I invite the business and banking community to take part in this new era to kick start the investment cycle, to expand credit appetites, help customers in need and forge a roadmap which is different from before. Banks and other financial institutions need to go back to the drawing board and redefine their strategies in a new world with redefined geo-political lines; a global economy that is rapidly digitalising, new trade maps and consumers that demand the best services.”

 Alahmadi added, “As I sit to write down a review of the year 2020 from my very own perspective, there are many thoughts that cross my mind. The year 2020 has been challenging, to say the least, for businesses, the government and our wider community. Whilst doomsday predictions abounded in 2020, we are still here, continuing to do business and looking optimistically ahead towards various opportunities that have come to light as a result of a new world order.”

He added, “the UAE is well on target to inoculate more than 50% of its population by March 2021. Although the final figures have yet to be confirmed, global Gross Domestic Product (GDP), as well as the UAE’s GDP, are likely to be very subdued for 2020 with a contraction in the range of 3.5% and 6% approximately. The good news is that most predictions for 2021 are optimistic and signal a return to growth throughout the year.”

 Alahmadi said, “the financial figures presented by banks and other financial institutions for year-end 31 Dec 2020 are encouraging and show the resilience that the banking system has built over time. The banking system’s gross assets, deposits and lending have all increased, albeit slightly. The more than adequate levels of capital (18.2%, tier 1 of 17.1%) and eligible liquid asset ratio (18.4%) in the system, alongside sufficient levels of provisioning, means that banks and financial institutions in the UAE have displayed robustness in the face of the pandemic’s onslaught.

The intervention of the Central Bank of the UAE (CBUAE), through the Targeted Economic Support Scheme (TESS) and various regulatory relaxations, was timely and meant that the required level of support was provided and helped banks through clearly very testing times. The Government of the UAE implemented various successful measures to facilitate ease of doing business and applied various relaxations on fees and costs to ensure the continued momentum of business activity.”

WAM


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