RIYADH: UAE gross bank assets, including bankers’ acceptances, increased by 2.2 percent from 3.69 trillion dirhams at the end of January to 3.75 trillion dirhams ($1.021 trillion) in February, data from the country’s central bank showed.
According to the Central Bank of the UAE, gross credit jumped by 1.2 percent to 1.9 trillion dirhams during the same period. It grew due to a 1.6 percent increase in domestic credit, overriding a 2.1 percent decline in foreign credit, the report said.
Domestic credit expanded due to a 2.8 percent and 3.2 percent increase in credit to the private sector and non-banking financial institutions, correspondingly. The official data showed that credit to the government and public sectors or the government-related entities declined by 0.2 percent and 2.1 percent, respectively.
Total bank deposits increased by 0.4 percent, rising from 2.23 trillion dirhams at the end of January 2023 to 2.24 trillion dirhams at the end of February 2023. It surged due to increases in resident deposits by 0.2 percent and non-resident deposits by 2 percent.
The central bank data showed a decline in the government sector and non-banking financial institutions’ deposits by 5.9 percent and 9.7 percent, respectively.
Money supply
The money supply aggregate M1 increased by 1.3 percent to 762 billion dirhams at the end of February 2023. Data suggested it was due to the growth in currency in circulation outside banks and monetary deposits.
The money supply aggregate M2 climbed by 1.7 percent to 1.75 trillion dirhams in February 2023. M2 rose due to an increased M1 and a rise of 19.6 billion dirhams in quasi-monetary deposits.
The money supply aggregate M3 also climbed by 0.3 percent to 2.13 trillion dirhams in the same period.
According to the central bank, the monetary base expanded by 1.4 percent to 543.9 billion dirhams due to increases in currency issued and monetary bills and Islamic certificates of deposit by 0.5 percent and 8.3 percent, respectively.
