Gross banks’ assets in the country surpassed the AED4.2 trillion mark by the end February 2024, for the first time in its history, according to the latest statistics from the Central Bank of the United Arab Emirates (CBUAE).

The bank in its monetary & banking developments for February 2024, reported an increase in total banking assets, including bank acceptance certificates, on an annual basis by about AED450.2 billion, with growth exceeding 12 per cent compared to about AED3.748 trillion during February 2023.
The total banking assets rose on a monthly basis by 2.2 per cent to AED4.198 trillion at the end of February 2024, compared to about AED4.109 trillion in January.
The gross credit grew by 0.9 per cent from AED1.996 trillion at the end of January 2024 to AED2.014 trillion at the end of February 2024. The gross credit rose due to an increase in domestic credit by 1.1 per cent, overshadowing a lessening of foreign credit by 0.6 per cent. The domestic credit rose because of 5.5 per cent, 0.2 per cent, 0.6 per cent and 1.7 per cent growth in credit to the government sector, the public sector (government related entities), the private sector and the non-banking financial institutions, respectively.
According to the CBUAE report, total bank deposits climbed by 2.7 per cent, increasing from AED2.540 trillion at the end of January 2024 to AED2.608 trillion at the end of February 2024. The rise in total bank deposits was due to the growth in resident deposits by 2.5 per cent and in non-resident deposits by 5.0 per cent.
The resident deposits expanded owing to increases in public sector (government-related entities) deposits by 18.4 per cent and in private sector deposits by 2.0 per cent.
The monetary base expanded by 2.7 per cent, from AED670.9 billion at the end of January 2024 to AED688.7 billion at the end of February 2024. The main driver of this increase in the monetary base was the rise in currency issued by 3.1 per cent, in reserve account by 1.2 per cent and monetary bills & Islamic certificates of deposit by 6.7 per cent, overriding the reductions in banks & OFCs’ current accounts & overnight deposits of banks at CBUAE by 4.0 per cent.
The Central Bank announced that the money supply aggregate M1 increased by 2.0 per cent, from AED830.0 billion at the end of January 2024 to AED 847.0 billion at the end of February 2024. This was due to AED 3.3 billion rise in currency in circulation outside banks, combined with AED 13.7 billion increase in monetary deposits.
The money supply aggregate M2 increased by 3.8 per cent, from AED2.028 trillion at the end of January 2024 to AED2.105 trillion at the end of February 2024. M2 increased due to an elevated M1 and AED59.4 billion rise in quasi-monetary deposits.
The money supply aggregate M3 also increased by 2.3 per cent, from AED2.478 trillion at the end of January 2024 to AED2.535 trillion at the end of February 2024. M3 increased mainly because of an augmented M2, overshadowing AED 19.4 billion fall in government deposits.-ANI/WAM