The total assets of banks, including bankers’ acceptances, increased by 2.2 percent, from 3,668.2 billion dirhams at the end of January 2023 to 3,747.8 billion dirhams at the end of February 2023, according to the UAE Central Bank for Monetary and Banking. Developments for the month of February 2023.
Total credit increased by 1.2% from AED 1,874.3 billion at the end of January 2023 to AED 1,896.9 billion at the end of February 2023. Total credit grew due to a 1.6% increase in domestic credit, outperforming the 2.1% decline in foreign credit.
Domestic credit expanded due to an increase of 2.8 percent and 3.2 percent in credit to the private sector and non-bank financial institutions, correspondingly. While credit to the government sector and the public sector (government-related entities) decreased by 0.2% and 2.1%, respectively.
Total bank deposits increased by 0.4 percent, from 2.233.2 billion dirhams at the end of January 2023 to 2.242.3 billion dirhams at the end of February 2023. The growth in total bank deposits was attributed to an increase in resident deposits by 0.2 percent and non-resident deposits by 0.2 percent. 2.0 percent. Resettlement of residents improved due to increases of 2.1 percent in both private sector and public sector (relevant government entities) deposits. However, government sector deposits and non-bank financial institution deposits decreased by 5.9 percent and 8.7 percent individually.
The Central Bank also announced that the total money supply n1 increased by 1.3 percent, from 752.1 billion dirhams at the end of January 2023 to 762.0 billion dirhams at the end of February 2023. This is due to the growth of 0.5 billion dirhams and 9.4 billion dirhams in currency circulating outside banks and in cash deposits respectively.
The total money supply, N2, increased by 1.7 percent, from 1,719.9 billion dirhams at the end of January 2023 to 1,749.4 billion dirhams at the end of February 2023. The N2 rose due to the increase in N1 and an increase of 19.6 billion dirhams in semi-cash deposits.
The total money supply, n3, also increased by 0.3 percent, from 2,124.0 billion dirhams at the end of January 2023 to 2,130.2 billion dirhams at the end of February 2023. The n3 increased mainly due to the rise in n2, which overshadowed the decrease of 23.3 billion dirhams. in government deposits.
The monetary base expanded by 1.4%, rising from AED 536.4 billion at the end of January 2023 to AED 543.9 billion at the end of February 2023. The main drivers for this expansion in the monetary base were increases in issued currencies, monetary bonds and Islamic certificates of deposits by 0.5 percent and 8.3 percent, respectively. Reserve account and current accounts of banks, OFCs and overnight deposits of banks at the Central Bank decreased by 1.1% and 4.0%, respectively.
