389.4 billion of the value of bank guarantees provided by the banking system

Media In – Abu Dhabi 11 April 2018 WAM
The total balance of bank guarantees provided by the banking system in the UAE increased to AED 389.4 billion at the end of November, an increase of about AED 5 billion compared to December 2017.
The value of bank guarantees amounted to 10.1% of the total balance of the statutory accounts of the banking system in the country, which amounted to the end of last November 3.826 trillion dirhams
The bank guarantee is a written undertaking by the bank at the request of the customer in favor of a certain entity, under which the bank undertakes to pay an amount not exceeding the value of the guarantee within a specified period of maximum expiry date. The guarantee is usually issued for a specific purpose in favor of the customer. As provided by this tool of funding elements of confidence and guarantee for both the sponsor and the beneficiary of the sponsorship.
Banking sector experts said that the increase in the value of bank guarantees provided since the beginning of the year reflects the continued activity in the economic sectors, especially the commercial sector, which is a major supporter of the national economy.
According to Central Bank of UAE data, the end of 2017 witnessed a decline in bank guarantees. The total balance in the third quarter of the year stood at AED 385.9 billion and continued to decline to AED 384.47 billion in the fourth quarter of the same year.
At the beginning of this year, the banking system returned to provide bank guarantees, which rose to AED 388.98 billion at the end of January and jumped to AED 389.4 billion in February. Economic development.