UAE Central Bank reports decline in total bank deposits

Decline due to reduction in resident deposits

  
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

Total bank deposits in the UAE have fallen by 0.2 percent in one month due to a decline in resident deposits, according to the latest data from the central bank. 

As of the end of April 2021, money held in deposit accounts across the country amounted to 1.877 trillion dirhams ($511 billion) compared to 1.881 trillion dirhams in March 2021. That’s a reduction in deposits by roughly 4 billion dirhams in one month. 

In a note sent on Tuesday, the central bank said the fall in deposits is attributable to 0.7 percent reduction in resident deposits. 

Resident deposits fell mainly due to lower government-related enterprise (GRE) and non-banking financial institutions’ deposits, which dropped by 12.5 percent and 6.4 percent, respectively. 

The banking authority also reported that the UAE money supply aggregate M1 increased marginally by 0.3 percent to 644.4 billion dirhams during the same period. 

The money supply aggregate M2 fell by 1.7 percent to 1.46 trillion dirhams, while money supply aggregate M3 reduced by 0.1 percent to 1.76 trillion dirhams. 

Gross banks’ assets, including bankers’ acceptances, fell by 0.2 percent to 3.169 trillion dirhams at the end of April. 

Gross credit went up by 0.5 percent to 1.76 trillion dirhams. 

(Writing by Cleofe Maceda; editing by Seban Scaria) 

Cleofe.maceda@refinitiv.com 

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© ZAWYA 2021

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