ABU DHABI (WAM)
The Central Bank of the UAE (CBUAE) revealed that Gross banks’ assets, including bankers’ acceptances, increased by 0.5% from Dh4,378.0 billion at the end of August 2024 to Dh4,401.7 billion at the end of September 2024.
In its Monetary & Banking Developments Report for September 2024, the apex bank said Gross credit increased by 2.3% from Dh2,112.9 billion at the end of August 2024 to Dh2,161.9 billion at the end of September 2024.
Gross credit increased due to increases in domestic credit by 1.6% and foreign credit by 6.9%. Domestic credit expansion was brought about by increases in credit to the; government sector by 0.4%, public sector (government-related entities) by 2.7%, private sector by 1.5% and non-banking financial institutions by 1.8%.
Banks’ deposits increased by 0.8%, from Dh2,740.5 billion at the end of August 2024 to Dh2,761.4 billion at the end of September 2024.
The growth in total bank deposits was the result of the increase in resident deposits by 0.8% and in non-resident deposits by 0.5%.
Resident deposits grew as a result of increases in government-related entities deposits by 4.9%, private sector deposits by 0.8% and non-banking financial institutions deposits by 20.5%, overriding the decrease in government sector deposits by 3.9%.
The bank also announced that the money supply aggregate M1 increased by 0.9%, from Dh888.0 billion at the end of August 2024 to Dh896.3 billion at the end of September 2024. This increase was mainly due to Dh2.0 billion increase in currency in circulation outside banks and Dh6.3 billion growth in monetary deposits.
The money supply aggregate M2 increased by 1.7%, increasing from Dh2,211.1 billion at the end of August 2024 to Dh2,249.6 billion at the end of September 2024. M2 increased because of an elevated M1 and Dh30.0 billion growth in Quasi-Monetary Deposits.
The money supply aggregate M3 also increased by 0.9%, from Dh2,696.3 billion at the end of August 2024 to Dh2,719.8 billion at the end of September 2024. M3 expanded mainly due to the growth in M2, overshadowing the Dh15.0 billion decrease in government deposits.
The monetary base expanded by 1.2%, from Dh734.9 billion at the end of August 2024 to Dh743.5 billion at the end of September 2024.
The growth in the monetary base was driven by increases in; currency issued by 1.0% and banks & OFCs’ current accounts & overnight deposits of banks at CBUAE by 39.2%, overriding the reduction in reserve account by 14.1%. Whereas, monetary bills & Islamic certificates of deposit remained constant at Dh240.9 billion.