The financial stability of the banks of the United Arab Emirates is strong, says the Central Bank

The UAE’s banking sector key indicators of financial stability, such as liquidity, financial support, and capital adequacy, indicate healthy balance sheet trends in moderate credit growth.
Image Credit Release Ahmed Ramzan / Gulf News Archive.

Dubai, United Arab Emirates (UAE) Central Bank (CBEE) for the first nine months of the fiscal year, the Bank of the United Arab Emirates (UAE) has shown strong resilience in assets and debt.

As the banks prepare to announce their 2021 results for next week, the Central Bank’s data indicates an improved work environment, improved asset quality, improved asset quality, profitability and financial support.

According to the third quarter of 2021, total bank deposits increased year on year and quarterly. However, total credit decreases each year, but the rate of decline decreases slightly over the quarter.

According to the CBUAE, in general, financial health indicators during this period have remained strong against the slowdown in the economy. The CBUAE has reaffirmed its commitment to support economic recovery through its quarterly economic assistance program (TESS) and the gradual cessation of emergency measures.

Deposits and loans

Total assets declined slightly by 0.2 percent year-on-year in the third quarter, while total bank loans declined by 1.6 percent year-on-year. This is largely due to the contract in the corporate loan portfolio compared to what it was a year ago.

Debt growth rebounded in Q3 2021, with private sector loans recovering slightly by 0.4 percent.

Although government deposits declined in the third quarter, total bank deposits improved by 1.8 percent. Private sector deposits rose 4.7 percent year-on-year, and non-resident deposits rose 27.1 percent.

At the end of Q3 2021, 80 percent of the deposits were made by traditional banks and the remaining 20% ​​by Islamic banks. Domestic and foreign banks’ deposits were 88.2 percent and 11.8 percent, respectively.

Financial health

The UAE’s banking sector key indicators of financial stability, such as liquidity, financial support, and capital adequacy, indicate healthy balance sheet trends in moderate credit growth.

The growth of the banking system to a stable asset ratio (ASRR) by 77.7% by the end of June 2021 and to 77.9% by the end of September 2021 indicates that the banking sector’s structural financial support has remained healthy.

LTD fell to 91.5 percent by the end of the third quarter, down from 92.7 percent at the end of the previous quarter, which is higher than the loan period. Season.

A.D. By the end of the third quarter of 2021, total liquid assets in banks stood at Dh485.2 billion, up 8.2 percent in Q3, 2021. The UAE’s banking system has been well-capitalized, with an average capital of CAR (17.7 percent).

Private shipping is on the rise.

In Q3 2021, remittances increased by 9.2 percent or DKK 3.7 billion annually. Bank remittances rose by $ 5 billion, or 29.2 percent, and by $ 1.3 billion (5.1 percent).
India, Pakistan, the United States, the United Kingdom and the Philippines accounted for 26 percent and 12.3 percent, respectively, of the top five and 6.6 percent, respectively. Every hundred.

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