Media ININ Economy We Trust
12-03-2019 Media in\ Abu Dhabi
The overall safety indicators of the banking sector in the UAE remained positive during the fourth quarter of 2018, after the Central Bank started applying capital quality guidelines in accordance with Basel III requirements.
The Central Bank said that the banks operating in the UAE have a high level of profitability and capital. The capital adequacy ratio is 18.2%, the first tier is 16.9% and the ordinary share of the first tier is 14.9%, which is much higher than the regulatory requirements set by the bank Central.
The loan-to-deposit ratio for the entire banking system fell from 94.8 percent in September 2018 to 94.4 percent at the end of the fourth quarter of 2018, a level also lower than the 997 percent recorded in the fourth quarter of 2017, Lending.
The ratio of loans to deposits was 94.7% and 93.1%, respectively. It fell by 4 percentage points from the previous quarter for conventional banks, while it rose by 5 percentage points to Islamic banks. The ratio of loans to deposits to banks National Bank 94.1%, down 0.6 percentage points from September 2018 while foreign banks accounted for 96.7% compared to 95.5% at the end of the third quarter of the same year.
At the same time, the ratio of liquid assets including mandatory reserve imposed by the central bank, certificates of deposit held by banks in the central bank, weighted government bonds with zero risk, public sector debt and bank cash as a percentage of total assets increased from 16.1% At the end of the third quarter of 2018 to 17.4% at the end of the fourth quarter of 2018. This level of liquid assets remains a significant protective measure as it is above the 10% minimum requested by the central bank.
Total liquid assets in banks at the end of the fourth quarter of 2018 were AED 407.6 billion, an increase of AED 35.4 billion compared to the end of the third quarter of 2018, an increase of 9.5% in the fourth quarter of 2018. This explains the increase in the ratio of liquid assets . On a year-on-year basis, total liquid assets in banks increased by AED 9.7 billion, an increase of 2.4%.
