iPhone | iPad
Android
Huawei
Move comes 4 years after the brand was banned from India as a part a wider crackdown on some Chinese apps following border conflicts
KT APPDOWNLOAD
UAE bank assets rise 2.6% in first quarter
UAE Central Bank issues monetary, banking, and financial markets developments report for Q1, 2023
uae, economy, recovery, fast, central bank, tess, covid,
Total assets of banks operating in the UAE increased by 2.6 per cent quarter-on-quarter, reaching Dh3.764 trillion by the end of the first quarter of 2023, a report from the Central Bank of the UAE showed on Monday.
The apex bank released the United Arab Emirates Monetary, Banking, and Financial Markets Developments Report for the first quarter of 2023 on Monday. The report provides insights into the monetary and banking activities, as well as the developments in the UAE financial markets during the specified period.
Monetary developments
The report highlights the performance of various money supply indicators. Money supply M1, comprising currency in circulation outside banks and monetary deposits, witnessed a 3.0 per cent quarter-on-quarter (quarter-on-quarter) increase during the first quarter of 2023. On an annual basis, there was a 4.3 per cent year-on-year (y-o-y) growth, reaching Dh759.3 billion by the end of March 2023. Money supply M2, which includes M1 plus quasi monetary deposits, experienced a 5.0 per cent quarter-on-quarter and 12.2 per cent y-o-y increase, reaching Dh1,788.4 billion. Money supply M3, including M2 plus government deposits, rose by 4.5 per cent quarter-on-quarter and 16.5 per cent y-o-y, amounting to Dh2,195.9 billion by the end of March 2023.
Banking sector development
The report provides insights into the banking sector, including the number of banks operating in the UAE. At the end of the first quarter of 2023, there were 22 locally incorporated banks, while the branches of these banks decreased to 494. The number of electronic banking service units increased to 47, and the cash offices remained constant at 21. The report also acknowledges the role of technological advancements in enhancing the accessibility and efficiency of the banking system.
For UAE banks, gross credit showed a 0.9 per cent quarter-on-quarter increase, amounting to Dh1,895.8 billion, while customer deposits rose by 3.8 per cent quarter-on-quarter and 14.9 per cent y-o-y, reaching Dh2,306.0 billion. Resident deposits increased by 4.1 per cent quarter-on-quarter, settling at Dh2,092.6 billion, while non-resident deposits rose by 0.4 per cent quarter-on-quarter, amounting to Dh213.4 billion.
Capital and reserves
The report discussed the capital adequacy ratios of banks, indicating the amount of capital in relation to risk-weighted exposures. The aggregate capital and reserves of banks operating in the UAE increased by 0.5 per cent quarter-on-quarter, reaching Dh430.7 billion by the end of the first quarter of 2023. The Total Capital Adequacy Ratio stood at 17.8 per cent , well above the prescribed requirements.
Foreign assets
The Central Bank’s foreign assets increased by 8.8 per cent quarter-on-quarter, reaching Dh537.4 billion by the end of the first quarter of 2023. The report also highlights the performance of financial markets, with the Abu Dhabi Financial Market Index falling by 6.7 per cent quarter-on-quarter and the Dubai Financial Market Index increasing by 1.6 per cent quarter-on-quarter during the same period.
The report offers valuable insights into the performance and trends within the financial sector of the UAE. It provides key data and analysis regarding monetary developments, banking sector growth, bank assets and loans, customer deposits, capital and reserves, foreign assets of the Central Bank, and the performance of financial markets in Abu Dhabi and Dubai. This report serves as a valuable resource for stakeholders, policymakers, and investors to understand the current state and trends of the UAE’s financial landscape.
More news from Business
Whether an activity is ancillary or not would depend on case-to-case basis and would primarily depend on the main activity
The deal will help BitOasis strengthen its position in the region and enhance its services.
Successful innovation efforts focus on supporting sustainability initiatives and uplifting marginalized communities
Lakshmi Narayanan honoured as Freeman of the City of London at Global Wealth Conference 2024
Russian economy weathers sanctions; the revenue accounts for a third of Russian budget proceedings
Higher supply from Nigeria and Iran offset the impact of voluntary supply cuts by other members and the wider Opec+ alliance
Investors await minutes of the Fed's last policy meeting for further cues on the central bank's interest rate cut path