ABU DHABI: Gross banks’ assets in the country surpassed the AED4.2 trillion mark by the end February 2024, for the first time in its history, according to the latest statistics from the Central Bank of the United Arab Emirates (CBUAE).
The bank in its monetary and banking developments for February 2024, reported an increase in total banking assets, including bank acceptance certificates, on an annual basis by about AED450.2 billion, with growth exceeding 12 percent compared to about AED3.748 trillion during February 2023.
The total banking assets rose on a monthly basis by 2.2 percent to AED4.198 trillion at the end of February 2024, compared to about AED4.109 trillion in January.
The gross credit grew by 0.9 percent from AED1.996 trillion at the end of January 2024 to AED2.014 trillion at the end of February 2024. The gross credit rose due to an increase in domestic credit by 1.1 percent, overshadowing a lessening of foreign credit by 0.6 percent. The domestic credit rose because of 5.5 percent, 0.2 perce
nt, 0.6 percent and 1.7 percent growth in credit to the government sector, the public sector (government related entities), the private sector and the non-banking financial institutions, respectively.
According to the CBUAE report, total bank deposits climbed by 2.7 percent, increasing from AED2.540 trillion at the end of January 2024 to AED2.608 trillion at the end of February 2024. The rise in total bank deposits was due to the growth in resident deposits by 2.5 percent and in non-resident deposits by 5.0 percent.
The resident deposits expanded owing to increases in public sector (government-related entities) deposits by 18.4 percent and in private sector deposits by 2.0 percent.
The monetary base expanded by 2.7 percent, from AED670.9 billion at the end of January 2024 to AED688.7 billion at the end of February 2024. The main driver of this increase in the monetary base was the rise in currency issued by 3.1 percent, in reserve account by 1.2 percent and monetary bills and Islamic certificates of deposi
t by 6.7 percent, overriding the reductions in banks and OFCs’ current accounts and overnight deposits of banks at CBUAE by 4.0 percent.
The Central Bank announced that the money supply aggregate M1 increased by 2.0 percent, from AED830.0 billion at the end of January 2024 to AED847.0 billion at the end of February 2024. This was due to AED3.3 billion rise in currency in circulation outside banks, combined with AED13.7 billion increase in monetary deposits.
The money supply aggregate M2 increased by 3.8 percent, from AED2.028 trillion at the end of January 2024 to AED2.105 trillion at the end of February 2024. M2 increased due to an elevated M1 and AED59.4 billion rise in quasi-monetary deposits.
The money supply aggregate M3 also increased by 2.3 percent, from AED2.478 trillion at the end of January 2024 to AED2.535 trillion at the end of February 2024. M3 increased mainly because of an augmented M2, overshadowing AED19.4 billion fall in government deposits.
Source: Emirates News Agency