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UAE Central Bank Reports Increase in Banking Assets and Credit

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BNN Correspondents
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UAE Central Bank Reports Increase in Banking Assets and Credit

In a recent statistical bulletin, the Central Bank of the United Arab Emirates (UAE) reported a 1.3% increase in banking assets, climbing from AED 3.901 trillion to AED 3.951 trillion at the end of September. This growth was complemented by a 1.4% rise in the volume of bank credit, which went from AED 1.953 trillion at the end of August to AED 1.981 trillion at the end of September.

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Details of the Growth

The surge in bank credit was steered by a notable 7.3% increase in foreign credit and a modest 0.7% rise in domestic credit. The domestic credit expansion can be attributed to a 3.3% increase in the public sector, 3.8% in non-financial institutions, and a 0.2% increase in the private sector.

Banking Deposits and Monetary Base

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Banking deposits saw a growth of 0.7%, moving from AED 2.403 trillion to AED 2.420 trillion at the end of September. This growth was chiefly driven by a 1.8% increase in resident deposits, which counterbalanced a 10.1% decline in non-resident deposits. In addition, the monetary base expanded by 0.4% from AED 595.1 billion to AED 597.3 billion. The expansion included a 0.5% increase in issued currency, a remarkable 13.1% rise in the reserve account, and increases in Islamic certificates of deposit and overnight deposits at the central bank.

Money Supply Indicators

The overall money supply indicators, M1, M2, and M3, also experienced growth. M1, which represents the most liquid forms of money, saw an increase of 2.2%. M2, which includes M1 and also less liquid short-term time deposits, grew by 2.6%. Lastly, M3, which encompasses M2 and also includes less liquid assets and large time deposits, grew by 1.6%.

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