Today's Edition
ABU DHABI (WAM)
The Central Bank of the UAE (CBUAE) revealed that gross banks’ assets, including bankers’ acceptances, increased by 1.3% from Dh4.4 trillion at the end of September 2024 to exceed Dh4.456 trillion at the end of October 2024.
The Monetary & Banking Developments - October 2024 report, issued by the Central Bank of the UAE (CBUAE), highlighted that gross credit increased by 0.6 percent from Dh2,161.9 billion at the end of September 2024 to Dh2,174.8 billion at the end of October 2024.
This increase is due to increases in domestic credit by 0.6 percent and foreign credit by 0.7 percent.
The report indicated that domestic credit grew due to increases in credit to the government sector by 0.2 percent, public sector (government-related entities) by 3.0 percent and private sector by 0.1 percent, overriding the decline in non-banking financial institutions by 1.8 percent.
Banks’ deposits increased by 1.5 percent, from Dh2,761.4 billion at the end of September 2024 to Dh2,802.5 billion at the end of October 2024. The growth in total bank deposits was the result of the increase in resident deposits by 1.2 percent and in non-resident deposits by 4.7 percent.
Resident deposits grew as a result of increases in government sector deposits by 2.3 percent, government-related entities deposits by 3.6 percent and private sector deposits by 1.1 percent overshadowing the decrease in non-banking financial institutions deposits by 13.0 percent.
The Central Bank announced that the money supply aggregate M1 increased by 1.5 percent, from Dh896.3 billion at the end of September 2024 to Dh909.9 billion at the end of October 2024. The increase was mainly due to Dh14.9 billion growth in monetary deposits, overshadowing the Dh1.3 billion decline in currency in circulation outside banks.
The money supply aggregate M2 increased by 0.9 percent, increasing from Dh2,249.6 billion at the end of September 2024 to Dh2,270.7 billion at the end of October 2024. M2 increased because of an elevated M1 and Dh7.5 billion growth in Quasi-Monetary Deposits.
The money supply aggregate M3 also increased by 1.3 percent from Dh2,719.8 billion at the end of September 2024 to Dh2,754.7 billion at the end of October 2024. M3 increased mainly due to the growth in M2 and the Dh13.8 billion increase in government deposits.
The monetary base decreased by 0.1 percent, from Dh743.5 billion at the end of September 2024 to Dh743.0 billion at the end of October 2024.
The decline in the monetary base was driven by 11.4 percent decrease in banks & OFCs’ current accounts & overnight deposits of banks at CBUAE, overriding the increases in; currency issued by 0.8 percent, reserve account by 0.05 percent and monetary bills & Islamic certificates of deposit by 6.2 percent.
