Liquidity assets of UAE banks rose by 6.5 percent, up 32 billion dirhams during three months to reach 521 billion dirhams by the end of June compared to 489 billion dirhams registered by the end of March, according to data from the UAE Central Bank.
The qualified liquidity is the cash liquidity of banks, and the current account balances and deposits with the Central Bank, and the investments in certificates of deposits and loans between the banks within the state and loans granted to the government which matures within 3 months.
The qualified liquidity is classified as a good liquidity of high quality and is considered the most important indicator to ensure the stability of the banking sector, which strengthens the confidence with the banks and the stability of monetary policy in the country, It’s strong rise is considered one of the most important elements of more bank deposits attraction to the sector in the state, it is also an important attraction element for the foreign investment. The introduction of Basel III standards to the state-run banks, which required the sector to maintain high levels of liquidity at all times, contributed to this growth which demonstrates the ability of the national banks to adhere to the best international standards and ensure the safety of the banking sector.
Source (Al-Ittihad Newspaper-UAE, Edited)
