ABU DHABI (WAM)
The liquid assets in the UAE banking sector stood at Dh786.6 billion at the end of Q1-24, marking a year-on-year increase of 28.2%, or Dh172.8 billion, compared to approximately Dh613.8 billion at the end of Q12023.
In its report on key financial stability indicators for Q1-24, released on Friday, the Central Bank of the UAE (CBUAE) stated that the value of these liquid assets increased on a quarterly (q-o-q) basis by 5.7%, or Dh42.7 billion, compared to approximately Dh743.95 billion at the end of the Q4-23.
The value of these assets constituted 18.8% of the total banking sector assets, which amounted to Dh4.185 trillion at the end of Q1-24, up from 18.6% at the end of Q4-23.
CBUAE pointed out that the UAE banking system is well-capitalised, with the overall capital adequacy ratio reaching 18% by end of Q1-24, compared to 17.9% at the end of Q4-23.
It explained that the capital adequacy ratio is still significantly higher than the minimum capital adequacy requirement of 13%, which includes a capital conservation buffer of 2.5% and a minimum Tier 1 capital requirement of 8.5%, as stipulated in the Central Bank's regulations in compliance with the Basel III guidelines, which have been followed by banks in the UAE since December 2017.
UAE's banking sector liquid assets stand at Dh786.6 billion in Q1-24
Source: WAM