Gross banks’ assets up 1.7% in September: CBUAE

The Central Bank announced that the Money Supply aggregate M1 increased by 0.5%, from Dhs719.4 billion at the end of August 2022 to Dhs723.0 billion at the end of September 2022.

The Money Supply aggregate M2 increased by 1.1%, from Dhs1,627.7 billion at the end of August 2022 to Dhs1,645.6 billion at the end of September 2022.

The Money Supply aggregate M3 also rose by 1.6%, from Dhs2,016.1 billion at the end of August 2022 to Dhs2,048.1 billion at the end of September 2022. The increase in M1 was due to Dhs0.7 billion rise in Currency in Circulation Outside Banks and Dhs2.9billion growth in Monetary Deposits. M2 increased due to an expanded M1 and Dhs14.3 billion ascent in QuasiMonetary Deposits. M3 grew due to an augmented M2 and Dhs14.1 billion increase in Government Deposits.

The Monetary Base contracted by 1.9% falling from Dhs 475.4 billion at the end of August 2022 to Dhs 466.5 billion at the end of September 2022. The main driver of this reduction in the Monetary Base was decrease in Banks & OFCs’ Current Accounts & Overnight Deposits of Banks at CBUAE by 30.9%, overshadowing the increase in Currency Issued and Reserve Account by 1.7% and 29.5%, respectively. Whereas, Certificates of Deposit & Monetary Bills remained constant.

Gross banks’ assets, including bankers’ acceptances, rose by 1.7%, rising from Dhs3,523.5 billion at the end of August 2022 to Dhs 3,583.0 billion at the end of September 2022.

Gross credit rose by 1.2% from Dhs1,851.1 billion at the end of August 2022 to Dhs1,873.4 billion at the end ofSeptember 2022. Gross Credit increased due to 1.0% rise in Domestic Credit and 3.2% increase in Foreign Credit.

Domestic Credit grew because of 0.2%, 3.0%, 0.6% and 2.3% climb in credit to Government Sector, Public Sector (Government Related Entities), Private Sector and NonBanking Financial Institutions, respectively.

Total Bank Deposits increased by 0.9%, climbing from Dhs2,166.6 billion at the end of August 2022 to Dhs2,186.9billion at the end of September 2022. The growth in Total Bank Deposits was due to the rise in Resident Deposits by1.6%, superseding the reduction in Non-Resident Deposits by 4.1%. Resident Deposits increased owing to 3.6%, 1.7%,and 33.8% expansions in Government Sector Deposits, Public Sector (Government Related Entities) Deposits andNon-Banking Financial Institutions Deposits, individually. Whereas, Private Sector Deposits decreased marginally by0.04%.

The Central Bank of the UAE organised last month the Insurance Sector CEO Forum on 14th November, 2022, in Abu Dhabi.

Khaled Mohamed Balama, Governor of the Central Bank of the UAE (CBUAE), chaired the forum.

The meeting organised by the CBUAE, aimed at enhancing the dialogue between the CBUAE and the insurance sector, through the coordination with the CEOs of insurance companies to address the priorities of the sector.

The performance of the insurance sector which remained resilient under the challenges posed by the pandemic was reviewed. The CBUAE further discussed the priorities for enhancing effective supervision and regulation of insurance companies, in line with insurance core principles, and the implementation of comprehensive corporate governance requirements for insurance companies.

The CBUAE also shed light on the planned establishment of an Ombudsman unit named ‘Sanadak’. The unit is expected to provide a unique mechanism for consumer complaint resolution through easy access and quick turnaround. In this regard, the CBUAE reiterated its commitment to ensure ethical conduct of firms and protection of the rights of the insured consumers.

Moreover, the CBUAE outlined a series of initiatives, emphasising the nation’s vision for the next fifty years, to increase Emiratisation in the insurance sector to 30 percent by 2026, as well as create additional 1,500 jobs for UAE nationals. The CBUAE defined learning pathways designed to upskill the competencies of Emiratis in line with insurance sector requirements through the Emirates Institute for Banking and Financial Studies.

The CBUAE discussed with the CEOs its strategic and transformational initiatives that will positively affect the UAE’s financial system and the insurance sector, including the financial infrastructure transformation programme to promote digitalisation of the insurance sector, further enhance the efficiency of insurance companies and broaden digital services available to the customers.