UAE’s Central Bank total reserves up to AED298 bn in May

Media IN ABU DHABI, 27th June, 2019 (WAM)

The total banks’ reserves at Central Bank of the United Arab Emirates amounted to AED298 billion by the end of May, a growth of AED5 billion during the past five months.

A bank reserve is the currency deposit that is not lent out to the bank’s clients. or, A small fraction of the total deposits held internally by the bank in cash vaults or deposited with the central bank.

The rise, according to CBUAE’s Banking Indicators Report released today, is driven by an increase in the bank’s reserve requirements which rose to AED126.3 billion in May, with the current accounts up to AED24.5 billion and certificates of deposits to AED147.1 billion.

In terms of credit, loans provided by to the government hiked 1.6 pc to AED204.8 billion in May, with business and industrial sector credit hitting AED807 billion.

The average cost on bank deposits stood at 1.1 %-1.8 % with the lending to stable resources ratio ranging from 81.2 % to 82.4 percent.

Specific provisions and the interest in suspense remained at AED94.5 billion, with the general provisions reaching AED32.4 billion by the end of May.