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- Dubai 04:25 05:43 12:19 15:46 18:50 20:09
Gulf Finance Corp, a wholly owned unit of Dubai's Shuaa Capital, plans to raise up to Dh600 million ($163 million) in syndicated loans this year. (Supplied)
Flushed with liquidity, UAE bank lending increased 8.2 per cent during the first quarter of 2015 to reach Dh1.44 trillion due to high level of deposits and capital adequacy, according to the Central Bank data.
In addition, customer deposits from residents and non-residents increased by 8.8 per cent during the quarter, amounting to Dh1.45 trillion.
Khalifa Mohammed Al Kindi, Chairman of the Board of the UAE Central Bank, explained that the UAE banking sector is broader and in a strong position at a regional level. He predicted that the sector will continue to perform well throughout 2015.
He said the UAE banking sector possesses a strong capital base and cash reserves amounting to Dh311.1 billion.
The banking sector is characterised by durability due to good global capital flows and the UAE is considered a safe haven for investments. He reiterated that UAE banks and financial institutions have positive credit ratings, with positive outlooks.
Abiding by the UAE Central Bank’s recommendations, banks have managed to strengthen their capital adequacy ratio, maintaining it at the same level as that of the first quarter of 2015 to exceed 12 per cent, with a 8 per cent increase in the tier 1 capital, as per the UAE Central Bank’s decision.
The UAE banking sector comprises 57 banks (23 local banks and financial institutions; and 34 foreign banks), including eight Islamic banks; with 929 branches spread across the UAE. 122 representative offices of foreign banks are established in the UAE, including 26 finance companies (24 of which are Islamic finance and investment companies), 25 investment companies and 140 foreign exchange companies, in addition to 4,878 ATMs.
Al Kindi highlighted that the actions taken by the Central Bank to strengthen the position of financial institutions and raise their capital adequacy has fortified the banking sector, expanding its work and raising its funding capacity. It has also helped in attracting customer deposits and re-employing them in various sectors of the national economy.
The Central Bank's total volume of assets in foreign currency increased by 1.3 per cent from Dh296.9 billion by the end of the first quarter of 2014 to Dh306.1 billion at the end of the first quarter of 2015 due to an increase of Dh7.52 billion in foreign bonds held to maturity.
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