UAE Bank Deposits Rise

Total bank deposits in the UAE rose by 1.5 per cent during December last year to reach Dhs1,069.7 billion ($291 billion) at the end of the month, the UAE Central Bank announced on Monday. Bank loans and net advances during the period decreased by 0.3 per cent to reach Dhs1,071 billion ($291.5 billion) and total bank assets fell by 0.6 per cent to reach Dhs1,662.1 billion ($452.5 billion) at the end of December 2011, official news agency WAM reported.

According to the data, money supply M1 (currency in circulation and currency at banks) reached Dhs52.1 billion at the end of December, a 2.1 per cent fall from Dhs53.2 billion at the end of November last year.

Money supply aggregate M2- which includes M1 and quasi-monetary deposits (residents’ savings deposits in dirhams and foreign currencies)- increased by 0.5 per cent, from Dhs822.1 billion at the end of November to Dhs825.8 billion at the end of December last year.

However, money supply aggregate M3- which includes M2 and government deposits in banks operating in the UAE and the central bank- decreased by 0.8 per cent in the period to reach Dhs1,001.4 billion at the end of December, compared to Dhs1,009.8 billion at the end of November 2011, the report stated.