The bank’s capital and reserves increased to AED 330.2 billion

MEDIA IN, Abu Dhabi, July 31, 2018 (WAM)

Total capital and reserves of banks operating in the country increased to AED 330.2 billion at the end of the second quarter of 2018, a growth of 4.4% over the same period of 2017. According to figures issued by the Central Bank of the UAE, the capital adequacy ratio increased by 3.4% during the second quarter of this year compared to a decrease of 0.5% during the corresponding quarter of 2017, but it is still much higher than 12.37% compared to the minimum percentage Of the capital of 8.5%, as stipulated in the Central Bank regulations and Basel III principles. The banks operating in the country began to apply Basel III principles as of December 2017 to calculate the capital adequacy ratio based on the directives of the Central Bank. The solvency calculates the bank’s capital as a percentage of exposure to risk weighted risk for all assets. The high solvency of banks will provide protection to depositors and consolidate financial stability and efficiency of the financial system of the economy, which is the same objective for which Basel III principles were developed. Total assets of banks operating in the country stood at AED 2.749 trillion at the end of the first quarter, up 1.1% from the same period in 2017. Bank credit increased to AED 1.622 trillion at the end of the second quarter of 2018 with a growth of 3.4% compared to the same quarter of 2017. Deposits also increased to AED 1.684 trillion.