Abu Dhabi, UAE— The Central Bank of the United Arab Emirates (CBUAE) has revealed that gross banks’ assets, including bankers’ acceptances, rose by 0.2%, from $937 billion at the end of May 2022 to $939 billion at the end of June 2022.
In its report on the monetary and banking developments in June 2022, the apex bank said that gross credit grew by 0.03% rising from $507.93 billion at the end of May 2022 to $508.12 billion at the end of June 2022.
Gross Credit rose due to 5.6% increase in Foreign Credit, overriding the 0.6% reduction in Domestic Credit. Domestic Credit fell mainly due to 0.3%, 1.2% and 20.8% decline in credit to Public Sector (Government Related Entities), Private Sector and Non‐ Banking Financial Institutions, respectively. Credit to the Government Sector increased by 4.0%.
Total bank deposits increased by 2.5%, climbing from $555.61 billion at the end of May 2022 to $569.61 billion at the end of June 2022. The growth in total bank deposits was due to the rise in resident deposits by 2.6% and non-resident deposits by 2.0%. Resident deposits increased owing to 3.9% and 22.6% expansions in private sector deposits and non-banking financial institutions deposits, respectively.
On the other hand, government sector deposits and public sector deposits diminished by 1.4% and 2.3%, correspondingly.
In the meantime, the monetary base contracted by 1.5% falling from $130.15 billion at the end of May 2022 to $127.97 billion at the end of June 2022, according to the report.
The main drivers of this tightening in the monetary base were reductions in reserve account, banks & OFCs’ current accounts and overnight deposits of banks at CBUAE and certificates of deposit & monetary bills by 0.5%, 1.7% and 4.6 %, respectively. Whereas, currency Issued increased by 1.7%.