In June of this year, bank deposits in the UAE increased sequentially month-over-month by 2.5 percent to AED 2,091.9 billion. This increase in bank deposits is a sign of rising individual incomes, perhaps as a result of an increase in employment in the nation.
Total bank deposits stood at AED 2,040.5 billion at the end of May 2022.
Resident bank deposits registered a higher growth in June at 2.6 percent, while non-resident deposits rose by two percent, according to the Central Bank of the United Arab Emirates (CBUAE) data.
The central bank said resident deposits increased owing to 3.9 percent and 22.6 percent expansions in private sector deposits and non-banking financial institutions deposits, respectively.
The government sector deposits and public sector deposits, on the other hand, declined by 1.4 percent and 2.3 percent respectively in June over May 2022.
The gross credit by UAE banks, however, grew only by a shade – 0.03 percent – in June to AED1,866.1 billion from AED1,865.5 billion at the end of May 2022, the apex bank said in its report on the monetary and banking developments in June 2022.
The gross banks’ assets rose by 0.2 percent from AED 3,442.7 billion at the end of May 2022 to AED3,449.2 billion at the end of June 2022.
The apex bank also said the country’s monetary base contracted by 1.5 percent in June, falling from AED 478.0 billion at the end of May to AED470.7 billion at the end of June 2022.
According to the apex bank report, decreases in reserve accounts, banks’ and OFCs’ current accounts, overnight bank deposits at CBUAE, certificates of deposit, and money bills were the main causes of the tightening of the monetary base.
But the money printed in June saw an increase of 1.7%.
