Banking Sector Remains Positive In Q3
Faizan Hashmi Published December 05, 2019 | 09:15 PM
ABU DHABI, (UrduPoint / Pakistan Point News / WAM - 05th Dec, 2019) The overall soundness of the banking sector remained positive during Q3 of 2019, according to the Q3 Economic Review issued by the Central Bank of the UAE.
Banks operating in the UAE remain well capitalised, with the Capital Adequacy Ratio at 17.7 percent, Tier 1 Capital at 16.5percent, and Common Equity Tier 1 at 14.7percent, which are well above the regulatory requirements set by the CBUAE.
The Loans to Deposits ratio for the whole banking system increased only slightly from 95.4 percent in June 2019 to 95.5 percent at the end of September 2019, mainly due to the slower growth pace of deposits (Q-o-Q 1.6 percent) compared to the registered growth in gross credit (Q-o-Q 1.7 percent).
Looking at the breakdown between Conventional and Islamic banks, the L/D ratio stands at 96.2percent and 92.9percent, respectively, increasing by 0.2 percentage points from the previous quarter for the conventional banks, while declining by 0.3 percentage points for the Islamic banks.
The Loan to Deposit ratio for Conventional banks in September 2019 increased compared to a year ago when it was 95.
5 percent. For Islamic banks, L/D also increased from 92.6 percent in September 2018 to 93.9percent at the end of the third quarter of 2019.
On the other hand, National banks have L/D ratio of 95.6 percent, relatively stable compared to June 2019, while the ratio for foreign banks increased in 2019 Q3 to 94.5 percent from 91.6percent in 2019 Q2.
Meanwhile, the eligible liquid assets,10 as a ratio of total liabilities, 11 remained at 17.6 percent at the end of 2019 Q3. This level of liquid assets constitutes an adequate buffer about the 10percent regulatory minimum required by the CBUAE.
The level of total liquid assets at banks, as of the end of 2019 Q3, stood at AED 430.6 billion, AED7.9 billion higher compared to the end of 2019 Q2.
On a Y-o-Y basis, total liquid assets at banks rose by AED58.4 billion, registering an increase by 15.7 percent.
In addition, looking at the breakdown between the banks, data show that for Islamic and National banks the ELARs increased during 2019 Q3 compared to 2019 Q2 while for Conventional and Foreign banks it slightly declined.
Related Topics
Recent Stories
ICC Womens T20 World Cup Qualifier, Match 2: Ireland Women open with Comfortable ..
Robinson, bowlers help New Zealand go 2-1 up against Pakistan
Shahzeb Chachar to hold khuli kachehri on April 26
Heatwave amid Israel's aggression in Gaza brings new misery, disease risk
Tourism must change, mayor says as Venice launches entry fee
Court adjourns Judicial Complex attack case till May 17
Nasreen Noori’s book ‘Popatan Jahra Khwab’ launched
Wafaqi Mohtasib inspection team visits Excise and taxation office
AJLAC announces 5th Conference titled ‘People’s Mandate: Safeguarding Civil ..
Pak-US officials engage to enhance trade, investment ties
IBCC to promote educational excellence, expand regional presence
Pakistani 'Blue Helmets' serving UN Peacekeeping Mission in DR Congo set to leav ..
More Stories From Middle East
-
UAE announces ‘Zero Bureaucracy Program’ to reduce bureaucracy
3 months ago -
COP28 President-Designate welcomes Transitional Committee agreement to operationalise Loss and Damag ..
6 months ago -
Global Media Congress 2023 to feature Co-Production Majlis as a new networking platform
6 months ago -
Young female athletes shine at Abu Dhabi World Youth Jiu-Jitsu Championship
6 months ago -
King of Jordan receives Abdullah bin Zayed and ministers participating in Arab coordination meeting
6 months ago -
Abdullah bin Zayed participates in coordination meeting of Arab foreign ministers, joint meeting wit ..
6 months ago
-
3rd annual conference of Emirates Society of Clinical Microbiology kicks off in Dubai
6 months ago -
SIBF 2023 hosts Nobel laureate to discuss emergence of ‘Afrofuturism’ in global discourse
6 months ago -
ALC announces winners of Kanz Al Jeel Award 2023
6 months ago -
SIBF turns spotlight on remarkable contributions of women
6 months ago -
Global assets in spot bitcoin ETFs hit $4.16 billion
6 months ago -
Rescuers struggle to find Nepal quake survivors as deaths reach 157
6 months ago