Banks in the UAE are in better position to provide personal and corporate loans than they were last year or in 2012, because residents’ cash in banks have boosted deposits of UAE lenders by 2.5 per cent in March 2014, according to the Central Bank of the UAE.
It says total bank deposits have reached AED1.3317 trillion (or $363 billion) as a result of an increase in resident deposits by AED30.6bn and an increase in non-resident deposits by AED1.6bn. The money supply aggregate M0 (currency in circulation + currency at banks) increased by 1.7 per cent, from AED64.2bn at the end of February 2014 to AED65.3bn at the end of March 2014, it adds.
The money supply aggregate M1 (currency in circulation + monetary deposits, ie current accounts and call accounts at banks) increased by 3.9 per cent, from AED396.6bn at the end of February to AED412.0bn at the end of March.
The money supply aggregate M2, which comprises M1 and quasi-monetary deposits (ie resident time and savings deposits in dirhams, commercial prepayments in dirhams and resident deposits in foreign currencies), increased by 4.8 per cent, from AED1,072.4bn at the end of February to AED1,124.3bn at the end of March.
The money supply aggregate M3 (M2 + government deposits at banks operating in the UAE, as well as at the UAE Central Bank) increased by 3.0 per cent, from AED1,243.5bn at the end of February to AED1,280.2bn at the end of March, while total bank loans and advances (gross basis) increased by 0.8 per cent to reach AED1,303.4bn and total bank assets (gross basis) increased by 1.6 per cent to reach AED2,180.4bn at the end of March.
The central bank adds that, from February, data on total bank loans and advances and total bank assets will be presented on a ‘gross basis’, instead of the previous practice of presenting them on a ‘net of provisions basis’.