85 billion dirhams of excess deposits on loans with UAE banks in 11 months

Media In Abu Dhabi – 6 January 2019 /
Deposits continued to outstrip loans from banks operating in the UAE by 85 billion dirhams in the first 11 months of 2018, showing an increase in liquidity, according to figures released by the UAE Central Bank.
In light of the steady increase in bank liquidity, this has reflected positively on the strength of its liquidity, which in turn boosted all indicators of its work.
The ratio of qualified liquidity assets at the end of November 2018 rose to 17% compared to 16.5% in October of the same year and the capital adequacy ratio in the first and second quarters increased to 18.2%.
The rise in interest rates during the last period has played a major role in increasing the demand of customers to invest in deposits in order to achieve guaranteed gains, especially in light of the instability experienced by other investment instruments.
The Central Bank figures show that the total balance of deposits with the banking system in the country increased to AED 1.739 trillion at the end of November 2018, an increase of 112 billion dirhams compared with 1.627 trillion dirhams in December 2017.
Support for the rise in resident deposits was AED 1.535 trillion at the end of November 2018 compared to AED 1.435 trillion at the end of December 2017.
Government deposits jumped from 212 billion dirhams to 303.5 billion dirhams in the same period.
At the level of loans, the total balance reached 1.653 trillion dirhams in November of 2018 compared to 1.58 trillion dirhams at the end of December of 2017.