The Central Bank: 509.6 billion dirhams of liquid assets in the banking sector at the end of the third quarter

Abu Dhabi on December 15th

The UAE Central Bank statistics showed an increase in the value of liquid assets in the country’s banking sector to 509.61 billion dirhams at the end of the third quarter of this year, an increase of 5% on an annual basis, or the equivalent of 24.4 billion dirhams, compared to 485.22 billion dirhams at the end of the third quarter of 2021.
And the Central Bank stated, in the basic financial safety indicators report for the third quarter of 2022, that the value of liquid assets in the banking sector accounted for 14.6% of the total assets of the banking sector, amounting to 3.5 trillion dirhams, at the end of the third quarter of this year.
The Central Bank’s report indicated that the UAE banking system enjoys good capital, as the total capital adequacy ratio reached 17.5% at the end of the third quarter of this year, as the capital adequacy ratio is still much higher than the minimum capital adequacy of 13%, and includes a capital buffer of 13%. 2.5% and 8.5% as the minimum level for the first tier of the capital, as stipulated in the regulations of the Central Bank based on compliance with the guidelines of the “Basel III” principles, which are followed by banks in the UAE as of December 2017.
The report pointed out that capital adequacy ratios measure the amount of a bank’s capital expressed as a percentage of risk-weighted assets, and a high capital adequacy ratio provides protection for depositors and enhances the stability and efficiency of the economy’s financial system.
The basic financial safety indicators report indicated that the percentage of the first tier of capital in the banking sector reached 16.3%, while the percentage of ordinary equity from the first tier reached 14.5%.