Sultan al Suwaidi, the Central Bank Governor, has asked banks to step up lending to businesses to reflect improving liquidity. Pawan Singh / The National
Sultan al Suwaidi, the Central Bank Governor, has asked banks to step up lending to businesses to reflect improving liquidity. Pawan Singh / The National
Sultan al Suwaidi, the Central Bank Governor, has asked banks to step up lending to businesses to reflect improving liquidity. Pawan Singh / The National
Sultan al Suwaidi, the Central Bank Governor, has asked banks to step up lending to businesses to reflect improving liquidity. Pawan Singh / The National

Business

Banks keep lending in check

Banks continued to be reluctant to raise lending significantly in April as loan growth trailed an increase in deposits.

Tom Arnold

June 08, 2011

  • English
  • Arabic

Banks remained reluctant to increase lending significantly in April as loan growth trailed a rise in deposits.

Central Bank data released yesterday showed deposits reached Dh1.12 trillion (US$305 billion), a rise of 2.1 per cent from March, but loans and advances edged up only 0.6 per cent, to Dh1.05tn over the same period.

The latest evidence of slow credit growth comes a week after Sultan al Suwaidi, the Central Bank Governor, asked banks to step up lending to businesses to reflect improving liquidity.

A continuing build-up of non-performing loans has been among the reasons cited by banks for their reluctance to increase their lending. Non-performing loans rose to 6.67 per cent of total loans at the end of April, up from 6.25 per cent at the end of December, Saeed al Hamiz, the senior executive director of banking supervision and examination at the Central Bank, said last week.

Lenders' assets dipped by 0.04 per cent to Dh1.69tn in April from the previous month, data showed.

Other Central Bank data indicated a gradual return to health by the financial system.

Money supply M2, an indicator of future inflation, rose by 1.9 per cent to Dh850.5bn at the end of April from the previous month.

M2 includes currency in circulation, monetary deposits, time and savings deposits held by UAE residents, and commercial prepayments and foreign currency deposits by residents.

"We are in a low inflationary environment and the low rise in money supply equates to low future inflation," said Tudor Allin-Khan, the chief economist at Alembic HC Securities in Dubai.

Money supply M1, comprising currency in circulation plus monetary deposits, rose by 3.8 per cent to Dh261.2bn in April compared with March.

The main driver of money growth was a 5.3 per cent rise in government deposits over the period, said a banking analyst. Private-sector deposits also rose.

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Estijaba – 8001717 –  number to call to request coronavirus testing

Ministry of Health and Prevention – 80011111

Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre

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A cryptocurrency primer for beginners

Cryptocurrency Investing  for Dummies – by Kiana Danial 

There are several primers for investing in cryptocurrencies available online, including e-books written by people whose credentials fall apart on the second page of your preferred search engine. 

Ms Danial is a finance coach and former currency analyst who writes for Nasdaq. Her broad-strokes primer (2019) breaks down investing in cryptocurrency into baby steps, while explaining the terms and technologies involved.

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The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


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Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
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