Gross banks’ assets in UAE stand at Dhs3,442.7 billion in May, says Central Bank
Photo used for illustrative purpose.
In its report on the Monetary & Banking Developments for May 2022, CBUAE clarified that the gross credit grew by 2.6 per cent rising from Dhs1,817.4 billion at the end of April 2022 to Dhs1,865.5 billion at the end of May 2022. Gross Credit rose due to 3.0 per cent increase in Domestic Credit, overriding the 0.1 per cent reduction in Foreign Credit.
Domestic Credit mounted mainly due to 1.4 per cent, 1.3 per cent, 3.5 per cent and 16.9 per cent surges in credit to Government Sector, Public Sector (Government Related Entities), Private Sector and Non-Banking Financial Institutions, respectively.
Total Bank Deposits increased by 1.6 percent, climbing from Dhs2,008.4 billion at the end of April 2022 to Dhs2,040.5 billion at the end of May 2022. The growth in Total Bank Deposits was due to the ascent in Resident Deposits by 2.0 per cent, overshadowing the reduction in Non-Resident Deposits by 1.2 per cent.
Resident Deposits increased owing to 10.6 per cent, 6.1 per cent and 0.02 per cent escalations in Government Sector Deposits, Public Sector (Government Related Entities) Deposits and Private Sector Deposits, respectively. On the other hand, Non-Banking Financial Institutions Deposits diminished by 18.0 per cent.
The Central Bank also said that the Money Supply aggregate M1 decreased by 2.8 per cent, from Dhs730.4 billion at the end of April 2022 to Dhs710.1 billion at the end of May 2022. The fall was due to Dhs4.6 billion reduction in Currency in Circulation Outside Banks and Dhs15.7 billion decrease in Monetary Deposits.
The Money Supply aggregate M2 (that includes M1 + Quasi-Monetary Deposits) increased by 0.1 percent, from Dhs1,567.3 billion at the end of April 2022 to Dhs1,568.1 billion at the end of May 2022. M2 rose due to Dhs21.1 billion increase in Quasi-Monetary Deposits, overriding the drop in M1.
The Money Supply aggregate M3 (that includes M2 + Government Deposits) also rose by 1.7 per cent, from Dhs1,858.6 billion at the end of April 2022 to Dhs1,890.2 billion at the end of May 2022. M3 soared due to the elevated M2, boasted by Dhs30.8 billion growth in Government Deposits.
WAM
