The ratio of credit (loans) to the total assets of the UAE banking sector declined last April to 56.3% compared to 57.3% in April 2019.
The ratio of banks' investments to the assets of banks operating in the state declined from 12.7% in April 2019 to 12.5% last April (2020), and the ratio of banks' reserves with the Central Bank to the total assets of the banking sector decreased to 9.5% in April 2020 compared to 10.1% in April 2019.
Compared to last month, the decline in the ratio of credit to total assets reached 0.2%, and the ratio of investment to total assets in March 2020 was 12.1%, while the ratio of banks' reserves to the central bank was 9.9%. According to the data of the Emirates Central Bank, the percentage of assets reached 57% at the end of last year, and the share of banks' reserves with the Central Bank reached 12.9%, and the share of banks' investments reached about 10.2% at the end of December 2019.
The UAE Central Bank expected the non-oil economy to shrink by 4.1% this year due to the Coronavirus pandemic, expecting the sharpest economic slowdown in the second quarter of the year. It also indicated that the actual performance of the economy will depend on government support measures and the fast containing of Corona.
Source (Al-Khaleej Newspaper-UAE, Edited)
