Gross banks’ assets reach AED4,378.0 billion by August-End: CBUAE

The Central Bank of the UAE (CBUAE) announced that gross banks’ assets, including bankers’ acceptances, increased by 0.7% from AED4,348.6 billion at the end of July 2024 to AED4,378.0 billion at the end of August 2024.

In its Monetary and Banking Developments for August 2024, the Central Bank said that gross credit increased by 0.5% from AED2,102.1 billion at the end of July 2024 to AED2,112.9 billion at the end of August 2024.

Gross credit increased due to increases in domestic credit by 0.5% and foreign credit by 0.8%.

Domestic credit expansion was primarily due to increase in credit to the private sector by 0.8%, overriding the reductions in credit to the public sector (government related entities) by 0.3% and the non-banking financial institutions by 3.0%. Credit to the government sector remained constant during August 2024.

Banks’ deposits increased by 0.2%, from AED2,736.0 billion at the end of July 2024 to AED2,740.5 billion at the end of August 2024.

The growth in total bank deposits was the result of the rise in resident deposits by 0.8%, overshadowing the decrease in the non-resident deposits by 6.4%.

Resident deposits grew as a result of increases in; government sector deposits by 2.6%, in private sector deposits by 1.2% and in non-banking financial institutions deposits by 4.2%, overriding the decrease in government related entities deposits by 5.9%.

The Central Bank announced that the money supply aggregate M1 decreased by 0.1%, from AED889.3 billion at the end of July 2024 to AED888.0 billion at the end of August 2024. This reduction was mainly due to AED0.9 billion fall in currency in circulation outside banks and AED0.4 billion decrease in monetary deposits.

The money supply aggregate M2 increased by 0.2%, rising from AED2,205.9 billion at the end of July 2024 to AED2,211.1 billion at the end of August 2024. M2 increased because of AED6.5 billion growth in Quasi-Monetary Deposits, overriding the fall in M1.

The money supply aggregate M3 also increased by 0.8%, from AED2,676.0 billion at the end of July 2024 to AED2,696.3 billion at the end of August 2024. M3 expanded due to the growth in M2 and AED15.1 billion increase in government deposits.

The monetary base expanded by 2.3%, from AED718.1 billion at the end of July 2024 to AED734.9 billion at the end of August 2024.

The growth in the monetary base was driven by increases in; currency issued by 0.6%, reserve account by 6.2% and monetary bills & Islamic certificates of deposit by %6.1, overriding the reduction in banks & OFCs’ current accounts & overnight deposits of banks at CBUAE by 10.2%.