By Staff Reporter
UAE Banks’ Assets Surpass AED4.45 Trillion in October 2024
The Central Bank of the UAE (CBUAE) has reported a 1.3% rise in gross banks’ assets, including bankers’ acceptances, reaching AED4.456 trillion by the end of October 2024, compared to AED4.4 trillion in September.
According to the Monetary & Banking Developments – October 2024 report, gross credit increased by 0.6% to AED2,174.8 billion. This growth was driven by a 0.6% rise in domestic credit and a 0.7% increase in foreign credit. Domestic credit gains were attributed to higher credit allocations to the government sector (+0.2%), government-related entities (+3.0%), and the private sector (+0.1%), despite a 1.8% decline in credit to non-banking financial institutions.
Bank deposits saw a 1.5% increase, reaching AED2,802.5 billion, fueled by a 1.2% growth in resident deposits and a 4.7% surge in non-resident deposits. Within resident deposits, the government sector (+2.3%), government-related entities (+3.6%), and private sector deposits (+1.1%) offset a sharp 13.0% drop in non-banking financial institution deposits.
The report also highlighted growth in money supply aggregates. M1 rose by 1.5% to AED909.9 billion, driven by a significant increase in monetary deposits, while M2 grew by 0.9% to AED2,270.7 billion due to elevated M1 and quasi-monetary deposits. M3 expanded by 1.3% to AED2,754.7 billion, bolstered by higher M2 levels and a AED13.8 billion increase in government deposits.
However, the monetary base declined marginally by 0.1% to AED743 billion, largely due to an 11.4% reduction in banks’ overnight deposits at the Central Bank, despite increases in currency issued, reserve accounts, and monetary bills.
These developments underscore a steady expansion of the UAE’s banking sector, reflecting economic resilience and growth.
News Source: Emirates News Agency
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