Banks ’certificates of deposit with the UAE Central Bank fell by 2.3% last May.
According to the newspaper, the Central Bank statistics showed that the certificates of deposit were recorded at the end of May, 194.3 billion dirhams, compared to 198.8 billion at the end of April, a difference of 4.5 billion. The bank's certificates of deposit during April recorded the highest levels in the history of the banking sector in the UAE.
The decline reveals an improvement in lending activity and directs banks to have liquidity to meet the demands of borrowers - companies, individuals, or government rather than depositing them in the central bank at a lower interest rate.
Domestic lending witnessed a noticeable increase in May, rising from 1 trillion and 607.1 billion dirhams at the end of April to one trillion and 611.4 billion at the end of May, up 4.3 billion. Lending to the industrial and commercial sectors increased from 814.6 billion dirhams to 815.7 billion at the end of May, an increase of 1.1 billion. Government-targeted lending increased from 231.2 billion dirhams to 238.3 billion dirhams, an increase of 7.1 billion.
(Fun Knowledge of Knowledge)
