(MENAFN) For the first time in its history, the banking sector in the United Arab Emirates has achieved a remarkable feat, with the total assets surpassing 4 trillion dirhams, equivalent to about 1.09 trillion dollars. The latest statistics from the UAE Central Bank, outlined in its report on monetary and banking developments for November 2023, reveal a notable 0.8 percent monthly increase in total banking assets, including bank acceptance certificates, reaching 4.026 trillion dirhams by the end of November, up from approximately 3.996 trillion dirhams in October 2023.
Breaking down the numbers, the Central Bank reported a 1 percent growth in total bank credit, reaching 1.994 trillion dirhams by the end of November compared to 1.974 trillion dirhams in October. The rise was attributed to a 0.8 percent increase in domestic credit and a more substantial 2.8 percent surge in foreign credit. The surge in domestic credit was fueled by a 5 percent increase in credit to the public sector, a 2 percent rise in credit to the private sector, and a noteworthy 6 percent increase in credit to non-banking financial institutions.
Total bank deposits also saw an upward trajectory, reaching 2.444 trillion dirhams by the end of November. Resident deposits increased by 0.4 percent, primarily driven by a 1.9 percent surge in private sector deposits. On the other hand, deposits of non-bank financial institutions remained unchanged during this period.
The monetary base witnessed a significant expansion of 2.9 percent, with a 3.5 percent increase in the currency issued and a 1.1 percent rise in Islamic cash bills and certificates of deposit. The report concluded by highlighting that the total money supply, represented by "M1," stood at 797.4 billion dirhams at the end of November. This was characterized by a decrease in cash deposits and a simultaneous increase in cash in circulation outside banks. The data underscores the robust growth and resilience of the UAE's banking sector, marking a historic milestone in its financial landscape.
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