Bank lending in the United Arab Emirates remains within prudential ratios set by the central bank, new central bank governor Mubarak al-Mansouri said in a speech on Monday.
The speech, to a regional banking conference in Dubai, was read on his behalf by assistant governor for banking supervision Saeed Abdullah al-Hamiz. It was Mansouri’s first public speech since he was appointed to the central bank’s helm in September.
“Bank lending remains within prudent limits set by the central bank, with the ratio of loans and advances to stable resources of banks reaching 86 per cent,” Mansouri said.
“The loan book on a gross basis has been increasing by an annual average rate of about five per cent during 2010-2013 and about eight per cent during nine months of this year…while bank deposits increased by an average of about seven per cent and 11 per cent respectively.
“Such indicators support healthy growth of the banking sector.”
Gross year-on-year bank lending growth in the UAE climbed to 8.6 per cent in September from 7.2 per cent in August, according to the latest central bank data.