Business | Banking

UAE central bank says monetary aggregate rose 7.8% on year

Bank loans and advances surged 4.4 per cent on year in January-June period, bank deposits up 7.5 per cent

  • By Himendra mohan Kumar, Staff Reporter
  • Published: 18:59 August 18, 2013
  • Gulf News

Abu Dhabi: The UAE Central Bank said yesterday during the first six months of 2013, monetary aggregate M2 increased 7.8 per cent on year, while bank loans and advances surged 4.4 per cent and total bank deposits were up 7.5 per cent year-on-year as a result of an increase in resident deposits by 9.2 per cent.

“The rise of loans and deposits reflects that there’s greater confidence of investors in the UAE economy,” Dr Abdul Hameed, an Abu Dhabi-based economist at the Ministry of Economy told Gulf News by telephone.

In June, the country’s apex bank said in a statement, the money supply aggregate M0 (currency in circulation plus currency at banks) decreased 1 per cent to Dh59.4 billion from Dh60.0 billion at the end of May 2013.

During the same period, money supply aggregate M1 (currency in circulation plus monetary deposits, i.e., current accounts and call accounts at banks) increased 1.6 per cent to Dh346.7 billion from D341.4 billion at the end of May. Money supply aggregate M2 which comprises of M1 and quasi-monetary deposits (resident time and savings deposits in dirhams, commercial prepayments in dirhams and resident deposits in foreign currencies), increased 1.3 per cent, from Dh917.9 billion at the end of May 2013 to Dh929.8 billion at the end of June.

It also said money supply aggregate M3 (M2 plus government deposits at banks operating in the UAE as well as at the Central Bank) increased 0.6 per cent in June to Dh1,182.5 billion from Dh1,174.9 billion at the end of May.

Total bank deposits in the UAE banks increased 0.7 per cent in June compared to May to close at Dh1,255.6 billion, as a result of an increase in resident deposits by 0.8 per cent, while total bank assets increased 0.2 per cent during the same period to reach Dh1,878.1 billion at the end of June.

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