Abu Dhabi: Total bank deposits in the UAE increased by Dh30.2 billion in September 2016 due to an Dh11.4 billion increase in resident deposits and an Dh18.8 billion increase in non-resident deposits, the Central Bank of the UAE said.
Banks in the UAE have been reporting slower growth in deposits over the past few quarters amid tighter liquidity conditions and lower government deposits due to falling oil prices.
First Gulf Bank (FGB), for example, on Wednesday reported flat deposits in the first nine months of 2016, while National Bank of Abu Dhabi recorded a 3.3 per cent increase in customer accounts and other deposits.
In a statement, the Central Bank added that money supply aggregate (M1), a measure of cash and deposits in the country’s banks, decreased by 0.2 per cent to Dh472.5 billion at the end of September 2016 mainly due to a decrease of Dh0.9 billion in monetary deposits. Meanwhile, gross bank assets increased by 1.3 per cent to reach Dh2.55 trillion at the end of September 2016 from Dh2.52 trillion at the end of August 2016. Gross credit also rose by 1.1 per cent month-on-month to reach Dh1.57 trillion at the end of September 2016, the UAE’s Central Bank said.