Gross assets of banks in UAE stand at Dhs 3,442.7 billion at the end of May

The headquarters of the Central Bank of the United Arab Emirates in Abu Dhabi.

The Central Bank of the United Arab Emirates (CBUAE) announced that banks’ gross assets, including bankers’ acceptances, increased to Dhs 3,442.7 billion at the end of May 2022, an increase of 2.9%, compared to 3 .44.8 billion Dhs at the end of April 2022.

In its report on monetary and banking developments for May 2022, the CBUAE specified that gross credit increased by 2.6%, from Dhs 1,817.4 billion at the end of April 2022 to Dhs 1,865.5 billion at the end of April 2022. May 2022. Gross credit increased due to the 3.0% increase in domestic credit, offsetting the 0.1% reduction in external credit.

Domestic credit increased mainly due to increases of 1.4%, 1.3%, 3.5% and 16.9% in credit to the public sector, public sector (government-related entities), private sector and to non-banking financial institutions, respectively.

Total bank deposits increased by 1.6% from MAD 2,008.4 billion at the end of April 2022 to MAD 2,040.5 billion at the end of May 2022. The growth in total bank deposits is due to the increase of 2.0% in resident deposits, eclipsing the reduction in non-resident deposits of 1.2%.

Residents’ deposits increased due to increases of 10.6%, 6.1% and 0.02% in public sector deposits, public sector deposits (government related entities) and private sector deposits, respectively. On the other hand, deposits from non-banking financial institutions fell by 18.0%.

The Central Bank also said that the money supply M1 aggregate decreased by 2.8% from Dhs 730.4 billion at the end of April 2022 to Dhs 710.1 billion at the end of May 2022. The decline was due to a reduction of 4.6 billion Dhs. of currency in circulation outside banks and a drop of 15.7 billion dirhams in monetary deposits.

The money supply M2 aggregate (which includes M1 + quasi-monetary deposits) increased by 0.1%, from 1,567.3 billion Dhs at the end of April 2022 to 1,568.1 billion Dhs at the end of May 2022 M2 increased due to 21.1 Dhs. billion increase in quasi-monetary deposits, reversing the decline in M1.

The money supply M3 aggregate (which includes M2 + government deposits) also increased by 1.7%, from Dhs 1,858.6 billion at the end of April 2022 to Dhs 1,890.2 billion at the end of May 2022 M3 soared due to increase in M2, boasts of Dhs 30.8 billion growth in government deposits.

The Central Bank of the United Arab Emirates (CBUAE) has issued a new Anti-Money Laundering and Anti-Terrorist Financing (AML/CFT) Directive for its Licensed Financial Institutions (LFIs) on risks related to payments.

The guidance, which comes into effect today, will help DFIs understand the risks and effectively implement their AML/CFT legal obligations, and take into account Financial Action Task Force (FATF) standards.

It requires DFIs to demonstrate compliance with its requirements within one month.

The guidance focuses on the money laundering and terrorist financing risks related to payments and the preventive measures that DFIs should apply in order to mitigate these risks. Given that new payment products and services may pose risks to the financial system due to the rapid movement of funds between payment participants and across borders, and that FDIs may be exposed to participants approved by the CBUAE and those operating globally, DFIs should adopt a risk-based approach. approach to mitigate and manage the risks of money laundering and terrorist financing.

They should conduct regular risk assessment to cover all payment products, services, relationships and exposure to domestic and foreign participants in the payments industry.

LFIs are responsible for performing due diligence on customers, monitoring all transactions processed or conducted through LFIs, and reporting suspicious transactions to the UAE Financial Intelligence Unit. They should also have a sanctions compliance program with operational systems that appropriately screen transactions and transmit required information throughout the payment cycle.

In correspondent relationships, ILFs should not process any payment for a correspondent unless they are fully satisfied that the correspondent is carrying out appropriate verification. These preventative measures should be integrated into a DFI’s AML/CFT compliance program and supported by governance and training.

Khalid Mohammed Balama, Governor of CBUAE, said, “We are committed to implementing high regulatory control over LFIs and their payment transactions, including products, services and exposure. The new guidelines ensure that all DFIs in the UAE understand their AML/CFT responsibilities. »

Meanwhile, the United Arab Emirates, represented by the Ministry of Finance (MoF) as issuer, together with the Central Bank of the United Arab Emirates (CBUAE) as issuing and paying agent, announced the results. of the third Treasury auction. Bond Program (T-Bonds), which is part of the AED 9 billion T-Bond issuance program for 2022, as published in the T-Bond Calendar earlier this year.

The third auction of the UAE T-Bond program saw strong demand through all six major bank brokers, with bids received worth AED 7.6 billion and an oversubscription of 5.1x. High demand was for both tranches with a final allocation of AED750 million for the 2-year tranche and AED750 million for the 3-year tranche, with a total of AED1.5 billion issued during of the third auction.

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