According to the Central Bank’s Monetary and Banking Developments report, the broad money supply aggregate M1 reached AED1,053.5 billion by the end of May, comprising AED167.6 billion in currency circulating outside banks and AED885.9 billion in monetary deposits.
The wider M2 measure, which includes quasi-money, climbed to AED2,853.9 billion, supported by a rise in dirham deposits to AED1,135.4 billion. M3, the broadest gauge of money supply, stood at AED3,393.4 billion, buoyed by growth in government sector deposits to AED539.5 billion.
The monetary base settled at AED848.5 billion for the month. A standout figure was the 49.4 percent jump in banks’ reserve balances with the Central Bank, which rose to AED295.4 billion.
On the banking sector’s balance sheet, gross assets rose 1.1 percent month on month to AED5,633.1 billion. Gross credit also expanded, increasing by AED12.3 billion, or 0.5 percent, to reach AED2,733.1 billion, driven largely by domestic lending.
Within domestic credit, growth was broad based. The private sector led the way, with corporate and individual lending each rising by AED4.6 billion. Credit extended to government related entities also grew, adding AED3.5 billion.
Bank deposits totalled AED3,463.4 billion at month end, with non-resident deposits climbing 3.6 percent to AED318.6 billion. Deposits from other financial corporations also strengthened, rising 2.4 percent to AED67.2 billion.
The figures point to a banking sector that remains on firm footing, with steady credit expansion and rising liquidity buffers heading into the second half of the year.
News Source: Emirates News Agency
