2024-01-16 19:00:00
The banking sector in the country continued to lead the Arab and Gulf countries, with assets exceeding four trillion dirhams, by the end of last November, for the first time in its history.
Data issued by the Central Bank yesterday showed that total banking assets, including bank acceptance certificates, increased on a monthly basis by 0.8% to 4.026 trillion dirhams by the end of November 2023, compared to regarding 3.996 trillion dirhams in the previous October.
Total bank credit also rose 1% to 1.994 trillion dirhams at the end of last November, compared to regarding 1.974 trillion dirhams at the end of October, with a 0.8% increase in domestic credit and a 2.8% increase in foreign credit.
The Central Bank attributed the increase in domestic credit to an increase of 5%, 2%, and 6% in credit granted to the public sector (government-related entities), the private sector, and non-banking financial institutions, respectively.
Total bank deposits reached 2.444 trillion dirhams at the end of last November, as resident deposits increased by 0.4% as a result of increases in private sector deposits by regarding 1.9%, while deposits of non-banking financial institutions did not witness any change.
In comment, banking expert, Ahmed Youssef, told Emirates Al-Youm, “The rise in assets in the banking sector is evidence of the abundance of liquidity in banks and attracting investments within the country, which contribute to the expansion of financing for all sectors of the economy.” He added that “the banking sector’s assets exceeding four trillion dirhams is an excellent indicator of the recovery of the national economy, and investors’ confidence in the directions of the government and the Central Bank,” noting that there is a large demand for the banking sector in terms of financing, despite the high interest rates, as well as for deposits due to their great potential. National banks have a good reputation, as all of this contributes to raising the value of banking assets.
In addition, Central Bank data showed that the total money supply “M1” – which includes cash in circulation outside banks plus cash deposits (current accounts and demand accounts with banks) – reached 797.4 billion dirhams at the end of last November, with cash deposits decreasing by an amount 4.9 billion dirhams, compared to an increase in cash in circulation outside banks by regarding three billion dirhams.
He pointed out that the total money supply “M2” – which includes “M1” plus quasi-cash deposits (time deposits and savings deposits of residents in dirhams and deposits of residents in foreign currencies) – increased by 0.7% from 1.922 trillion dirhams at the end of October to 1.935 trillion dirhams at the end of November. As a result of the increase in semi-cash deposits by 15 billion dirhams.
The total money supply “M3” – which includes “M2” plus government deposits with banks operating in the country as well as with the Central Bank – also increased by 0.5% from 2.377 trillion dirhams last October to 2.389 trillion dirhams at the end of November 2023, as a result of the increase in… Money supply “M2”.
The Central Bank’s foreign assets
The total foreign assets of the Central Bank exceeded 600 billion dirhams at the end of last November, for the first time in its history.
Statistics issued yesterday showed that the Central Bank’s foreign assets increased on a monthly basis by 3.7% from 597.72 billion dirhams last October to 619.85 billion dirhams at the end of November 2023, an increase equivalent to 22.13 billion dirhams.
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