Deposits with UAE banks soared to their highest ever level of around Dh1,079 billion at the end of February, maintaining their position as having the largest deposit base in the Arab region, official data showed on Monday.
The deposits were nearly Dh20 billion higher than their January peak of about Dh1,057 billion and more than Dh100 billion above their level of nearly Dh968 billion a year ago, figures by the Central Bank showed.
The Central Bank gave no breakdown for the deposits but money supply M3 figures showed government deposits swelled by nearly Dhseven billion to Dh209 billion at the end of February from Dh202 billion at the end of January.
"Bank deposits increased by 2.1 per cent during February, reaching Dh 1,079.0 billion. Meanwhile, total bank loans and advances (net of provisions and interest in suspense) increased by 0.6 per cent, reaching ADh1,049.2 billion…total bank assets rose by around1.8 per cent, reaching Dh1.66 trillion at the end of February," the central bank said in its monthly report on monetary aggregates in the UAE.
It showed money supply M0 (currency in circulation + currency at banks) increased by 2.3 per cent, from Dh46.9 billion at the end of January to Dh 48.0 billion at the end of February.
Money supply M1 (currency in circulation plus monetary deposits, i.e., current accounts and call accounts at banks) increased by 2.4 per cent from Dh 236.9 billion to Dh 242.7 billion in the same period.
The report showed M2 which comprises M1 plus quasi-monetary deposits grew by 2.9 per cent from Dh 795.2 billion as at the end of January to Dh818.3 billion at the end of February.
M3, covering M2 plus government deposits with the banking sector rose by two per cent from Dh 997.5 billion at the end of January to Dh 1,017.7 billion at the end of February.
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