The Central Bank added, in a report today, entitled “Monetary and Banking Developments for June 2024”, that total credit rose by 1.1 percent to AED 2.101 trillion at the end of June, compared to AED 2.078 trillion at the end of last May, as a result of a 0.8 percent increase in domestic credit and a 2.9 percent increase in foreign credit, according to what was reported by the Emirates News Agency “WAM”.
The Central Bank attributed the expansion in domestic credit to increases in credit to the public sector, government-related entities, and private sector credit by 1.4 percent and 1 percent respectively, offsetting the 1.1 percent and 0.6 percent decline in credit to the government sector and non-banking financial institutions.
Total bank deposits rose by 0.5 percent to AED 2.692 trillion at the end of June, compared to AED 2.678 trillion at the end of May, driven by an 8.4 percent increase in non-resident deposits, outweighing a 0.1 percent decline in resident deposits.
The Central Bank stated that resident deposits decreased as a result of a 3 percent decrease in government deposits and a 0.1 percent decrease in government-related deposits, while private sector deposits increased by 0.4 percent and non-banking financial institutions deposits increased by 6.6 percent at the end of last June.
Foreign assets
The total foreign assets of the Central Bank of the UAE exceeded the 770 billion dirham barrier by the end of last June, for the first time in its history, according to the bank’s latest statistics, as they increased on a monthly basis by 0.5 percent from 766.73 billion dirhams in May to 770.6 billion dirhams in June 2024, an increase equivalent to 3.88 billion dirhams.
The Central Bank’s foreign assets increased by 30 percent on an annual basis, compared to about 592.11 billion dirhams in June 2023, an increase equivalent to about 178.5 billion dirhams in 12 months.
The Central Bank’s statistics attributed the increase in the volume of foreign assets to the increase in bank balances and deposits in banks abroad, to 533.86 billion dirhams, while foreign securities increased to 179.72 billion dirhams, and other foreign assets rose to more than 57 billion dirhams by the end of last June.
The Central Bank stated that its foreign assets do not include its reserve position and special drawing rights with the International Monetary Fund.
Central budget
The balance sheet of the Central Bank of the UAE reached AED 806.39 billion at the end of last June, an annual increase of 24.2 percent compared to about AED 649.4 billion in June 2023, an increase equivalent to AED 157 billion over 12 months.
According to statistics, the Central Bank’s budget was distributed on the assets side at AED 352.79 billion for cash and bank balances last June, in addition to investments at AED 206.43 billion, AED 208.78 billion for deposits, AED 1.71 billion for loans and advances, and AED 36.68 billion for other assets.
The balance sheet was distributed on the liabilities and capital side as follows: AED 396.72 billion for current accounts and deposit accounts, AED 226.93 billion for Islamic bills and certificates of deposit, AED 145.36 billion for issued banknotes and coins, AED 26.56 billion for capital and reserves, and AED 10.82 billion for other liabilities.
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