Bank deposits up 0.7% to AED1,928.7 bn by end of August: CBUAE

Bank deposits up 0.

7% to AED1,928.

7 bn by end of August: CBUAE

ABU DHABI, 12th October, 2021 – The Central Bank of the United Arab Emirates (CBUAE) said today that total bank deposits increased by 0.

7%, rising from AED 1,915.

1 billion at the end of July 2021 to AED 1,928.

7 billion at the end of August 2021.

In a statement today, the apex bank attributed the rise in total bank deposits to a 0.

6% increase in resident deposits and 1.

5% increase in non-resident Deposits.

Resident Deposits rose due to 4.

6% rise in government-related entities (GRE) deposits and 0.

6% rise in private sector deposits, superseding reductions in government sector deposits and non-banking financial institutions deposits by 1.

0% and 12.

1%, respectively.

In the meantime, the bank announced that the Money Supply aggregate M1 increased by 1.

1%, from AED 653.

9 billion at the end of July 2021 to AED 661.

1 billion at the end of August 2021.

“The money supply aggregate M2 increased by 0.

7%, from AED 1,477.

9 billion at the end of July 2021 to AED 1,487.

8 billion at the end of August 2021.

The Money Supply aggregate M3 also increased by 0.

3%, from AED 1,775.

0 billion at the end of July 2021 to AED1,780.

7 billion at the end of August 2021.


The rise in M1 was due to an AED9.

7 billion increase in Monetary Deposits, overriding AED 2.

5 billion reduction in currency in circulation outside banks.

M2 increased due to an increased M1 and an AED 2.

7 billion rise in Quasi-Monetary Deposits.

M3 rose due to increases in M1 and M2, overshadowing AED 4.

2 billion drop in government deposits.

The Monetary Base expanded by 1.

8 % rising from AED 436.

9 billion at the end of July 2021 to AED 444.

7 billion at the end of August 2021, added the statement.

“The main driving force behind this expansion in the Monetary Base was 68.

5% increase in Banks & OFCs’ current accounts & overnight deposits of banks at CBUAE, overshadowing the fall in Currency Issued by 2.

6%, in Reserve Account by 16.

2% and in certificates of deposit & monetary bills by 1.

5%.


Gross banks’ assets, including bankers’ acceptances, decreased by 0.

2%, declining from AED 3,233.

4 billion at the end of July 2021 to AED 3,228.

5 billion at the end of August 2021, according to the bank’s figures.

“Gross credit increased by 0.

2% climbing from AED 1,768.

6 billion at the end of July 2021 to AED 1,771.

4 billion at the end of August 2021.

” It attributed the gross credit increase to a 0.

3% rise in domestic credit, overshadowing the 0.

8% fall in foreign credit.

The rise in domestic credit was mainly due to 0.

6%, 0.

3% and an 4.

5% increase in credit to the government sector, private sector and non-banking financial institutions respectively, despite the reduction in credit to public sector (GRE) by 0.

3%.

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