UAE Central Bank reveals term deposits surge by $6.2bln in seven months

The growth is attributed to a rising demand over this type of deposits due to their higher returns in comparison with other investment vehicles

  
Vehicles stop at a red light in front of the main branch of UAE Central Bank in Abu Dhabi, January 29, 2013. Image used for illustrative purpose

Vehicles stop at a red light in front of the main branch of UAE Central Bank in Abu Dhabi, January 29, 2013. Image used for illustrative purpose

REUTERS/Ben Job

ABU DHABI: The 6-12 month term deposits grew by AED22.8 billion ($6.2bln), or 13 pct, during the first seven months of the year, according to the statistics of the Central Bank of the UAE, which put their current cumulative balance at AED199 bn, accounting for about 20.5 percent of the total value term deposits at UAE banks by the end of July.

The growth is attributed to a rising demand over this type of deposits due to their higher returns in comparison with other investment vehicles.

According to CBUAE's figures, the month of May saw these deposits go down to AED160.87 bn before rising to AED199 bn by the end of July from AED180 bn in Q1 and AED176.23 bn in Q4-2019.

National banks hold 91 pct, or AED181.3 bn, of these deposits, according to the statistics.

© Copyright Emirates News Agency (WAM) 2020.

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