Statistics from the Central Bank of the Emirates showed that the value of liquid assets in the banking sector increased to 518.55 billion dirhams at the end of the first quarter of this year. That is, an increase on an annual basis of 6.6%, or 32 billion dirhams, compared to 486.58 billion dirhams at the end of the first quarter of 2021.
The Central Bank indicated that the proportion of liquid assets, which reflects liquidity in the banking system, amounted to about 19 percent by the end of the first quarter of this year, which is much higher than the minimum regulatory requirements of 10 percent. According to the Central Bank, the total capital and reserves of banks operating in the UAE reached 395.5 billion dirhams by the end of the first quarter of this year, an increase on an annual basis of 4.6 percent, or the equivalent of 17.4 billion dirhams, compared to 378.1 billion dirhams in the first quarter of 2021.
The Central Bank noted that the UAE banking system continued to enjoy good capital at the end of the first quarter of this year; The total capital adequacy ratio was 17.1 percent which means that it is still well above the minimum capital adequacy of 13 percent and includes the source capital of 2.5 percent and 8.5 percent of the minimum tier 1 capital, this is as stipulated in the Central Bank regulations based on compliance with the guidelines of “Basel III” principles, which are followed by banks in the UAE as of December 2017.
Source (Emirati Gulf Newspaper, Edited)
