(Source: Haseeb Haider Khaleej Times, Dubai, United Arab Emirates (MCT) ABU DHABI – Bank loans and advances in the UAE showed a growth of 3.8 per cent year-on-year in 2011, according to latest data. “Bank deposits grew 1.9 per cent in the year,” according to a release from the UAE Central Bank.
The growth is significant as the central bank introduced new rules on lending in the year to restrict generous loans to customers as in the past.During the year, intermediary monetary aggregate M2 increased by five per cent. In December 2011, bank deposits rose 1.5 per cent to close at Dh1.069 trillion.
Total bank loans and advances, net of provisions and interest in suspense, decreased by 0.3 per cent to reach Dh1.071 trillion, while total bank assets declined by 0.6 per cent to reach Dh1.662 trillion at the end of December 2011.
Money supply M0 — which comprises currency in circulation, along with currency at banks — decreased by 2.1 per cent, from Dh53.2 billion at the end of November 2011 to Dh52.1 billion at the end of December of the same year.
Money supply aggregate M1 — which includes currency in circulation plus monetary deposits, i.e., current accounts and call accounts at banks — decreased by 0.2 per cent, from Dh264.6 billion at the end of November to Dh264.1 billion at the end of December 2011. Money supply aggregate M2 — which comprises of M1 and quasi-monetary deposits which include resident time and savings deposits in dirham, commercial pre-payments in dirham and resident deposits in foreign currencies — increased by 0.5 per cent, from Dh822.1 billion at the end of November to Dh825.8 billion at the end of December 2011.
Money supply aggregate — M3, M2 plus government deposits at bank operating in the UAE as well as at the central bank — decreased by 0.8 per cent, from Dh1.009 trillion at the end of November to Dh1.001 trillion at the end of December 2011.
©2012 the Khaleej Times (Dubai, United Arab Emirates)
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