Bank deposits in UAE have risen by 2.5 percent on a sequential month-on-month basis in June this year to AED 2,091.9 billion, indicating growing individual incomes, probably from rising jobs in the country.
Total bank deposits stood at AED 2,040.5 billion at the end of May 2022.
Resident bank deposits registered a higher growth in June at 2.6 percent, while non-resident deposits rose by two percent, according to the Central Bank of the United Arab Emirates (CBUAE) data.
The central bank said resident deposits increased owing to 3.9 percent and 22.6 percent expansions in private sector deposits and non-banking financial institutions deposits, respectively.
The government sector deposits and public sector deposits, on the other hand, declined by 1.4 percent and 2.3 percent respectively in June over May 2022.
The gross credit by UAE banks, however, grew only by a shade – 0.03 percent – in June to AED1,866.1 billion from AED1,865.5 billion at the end of May 2022, the apex bank said in its report on the monetary and banking developments in June 2022.
Even the negligible growth in the gross credit was due to a 5.6 percent increase in foreign credit, while domestic credit registered a 0.6 percent decline in June from the preceding month.
The apex bank said domestic credit fell mainly due to 0.3 percent, 1.2 percent and 20.8 percent decline in credit to the public sector, private sector and non‐ banking financial institutions, respectively.
Credit to the government sector, however, posted an increase of four percent in June over May.
The gross banks’ assets rose by 0.2 percent from AED 3,442.7 billion at the end of May 2022 to AED3,449.2 billion at the end of June 2022.
The apex bank also said the country’s monetary base contracted by 1.5 percent in June, falling from AED 478.0 billion at the end of May to AED470.7 billion at the end of June 2022.
The main factors for the tightening in the monetary base were reductions in reserve account, banks and OFCs’ current accounts and overnight deposits of banks at CBUAE and certificates of deposit and monetary bills, according to the apex bank report.
The currency issued in June, however, increased by 1.7 percent.
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