UAE’s gross bank assets, including bankers’ acceptances, increased marginally by 0.7%, rising from AED3.62 trillion at the end of October 2022 to AED3.64 trillion ($990 billion) at the end of November 2022.

 

According to figures published in the Central Bank of the UAE (CBUAE) November summary report on monetary and banking developments, gross credit rose by 0.5% from around AED1.88 trillion at the end of October 2022 to around AED1.89 trillion at the end of November 2022, a WAM report said. 

 

Gross credit increased due to 0.8% rise in domestic credit, overriding the 1.7% reduction in foreign credit. Domestic credit grew because of 0.4%, 2.0% and 0.7% climbs in credit to the government sector, public sector (government related entities) and private sector, correspondingly; overriding the reduction in credit to the non-banking financial institutions by 3.8%.

 

Bank deposits

Total bank deposits increased by 1.6%, mounting from around AED2.204 trillion at the end of October 2022 to some AED2.239 trillion at the end of November 2022. The growth was due to the rise in resident deposits by 2.5%, overshadowing the reduction in non-resident deposits by 6.2%. The deposits increased owing to 0.6%, 9.8%, 2.0% and 1.3% expansions in government sector deposits, public sector (government related entities) deposits, private sector deposits and non-banking financial institutions deposits, respectively.

 

The report also revealed that the monetary base expanded by 3.7% climbing from AED468.8 billion at the end of October 2022 to AED486.0 billion at the end of November 2022. The main drivers of this expansion were increases in currency issued and Banks and OFCs’ current accounts and overnight deposits of banks at CBUAE by 4.8% and 58.3%, respectively. Reserve account and certificates of deposit and monetary bills decreased by 23.7% and 1.9%, individually.

 

The Money Supply aggregate M1 increased by 0.9% (m-o-m) reaching AED729.7 billion at the end of November 2022. This was due to AED1.7 billion and AED4.9 billion rise in currency in circulation outside banks and in monetary deposits, respectively.

 

Money Supply aggregate M2

The Money Supply aggregate M2 ascended by 3.0%, from around AED1.629 trillion at the end of October 2022 to around AED1.678 trillion at the end of November 2022. M2 swelled due to an improved M1 and an increase of AED42.1billion in quasi-monetary deposits.

 

The Money Supply aggregate M3 also rose by 2.5%, from around AED2.058 trillion at the end of October 2022 to around AED2.110 trillion at the end of November 2022. M3 grew because of an increased M2 and AED2.7 billion expansion in government deposits.-- TradeArabia News Service