UAE's gross bank assets, including bankers’ acceptances, increased by 1.0% from AED4.25 trillion at the end of March 2024 to AED4.3 trillion ($1.17 trillion) at the end of April 2024, according to the Central Bank of the UAE (CBUAE).

 

Gross credit grew by 0.8% from AED2.05 trillion at the end of March 2024 to AED2.06 trillion at the end of April 2024, a WAM report said. Gross credit growth was driven by the increase in domestic credit by 0.7% and in foreign credit by 1.4%. Domestic credit expansion was due to increase in credit to the government sector and private sector by 4.7% and 0.4% respectively, offsetting the 0.5%, and 3.8% decrease in credit to the public sector (government-related entities) and non-banking financial institutions, CBUAE’s Monetary & Banking Developments said.

 

Aggregate bank deposits increased by 2.3%, from AED2.66 triillion at the end of March 2024 to AED2.72 trillion at the end of April 2024. The increase in total bank deposits was due to the growth in resident deposits by 2.7% offsetting the decline in non-resident deposits by 2.9%.

 

Resident deposits

Resident deposits expanded as a result of the growth in government and private sector deposits by 13.0% and 1.4% respectively, offsetting the decline in government related entities deposits and non-banking financial institutions deposits by 0.5% and 18.8%, respectively at the end of April 2024.

 

The Central Bank announced that the money supply aggregate M1 increased by 1.6%, from AED878.1 billion at the end of March 2024 to AED892.4 billion at the end of April 2024. This was due to AED1.2 billion rise in currency in circulation outside banks, combined with AED13.1 billion increase in monetary deposits.

 

The money supply aggregate M2 increased by 0.6%, from AED2.13 trillion at the end of March 2024 to AED2.15 trillion at the end of April 2024. M2 increased mainly due to an elevated M1, overriding the AED0.6 billion reduction in Quasi-Monetary Deposits.

 

The money supply aggregate M3 increased by 2.8%, from AED2.58 trillion at the end of March 2024 to AED2.66 trillion at the end of April 2024. M3 increased mainly because of an amplified M2, combined with an increase of AED59.9 billion in government deposits.

 

Monetary base

The monetary base expanded by 1.5%, from AED703.7 billion at the end of March 2024 to AED714.3 billion at the end of April 2024. The rise in monetary base was driven by the growth in banks & OFCs’ current accounts & overnight deposits of banks at CBUAE by 72.0%, overshadowing the decline in currency issued by 0.1%, reserve account by 16.9% and monetary bills & Islamic certificates of deposit by 1.6%.--TradeArabia News Service