CBUAE highlighted a quarter over quarter rise of 5.7 per cent, equivalent to Dhs42.7bn, compared to about Dhs743.95bn at the end of Q4 2023
The liquid assets of the UAE’s banking sector soared to Dhs786.6bn by the end of Q1 2024, marking a year-on-year increase of 28.2 per cent or Dhs172.8bn from around Dhs613.8bn in Q1 2023.
In its latest report on key financial stability indicators, the Central Bank of the UAE (CBUAE) highlighted a quarterly (q-o-q) rise of 5.7 per cent, equivalent to Dhs42.7bn, compared to about Dhs743.95bn at the end of Q4 2023.
The value of these liquid assets constituted 18.8 per cent of the total banking sector assets, which amounted to Dhs4.185tn at the end of Q1 2024, slightly up from 18.6 per cent recorded in Q4 2023.
UAE banks: Overall capital adequacy ratio of 18 per cent in Q1
CBUAE underscored the robust capitalisation of the UAE banking system, noting an overall capital adequacy ratio of 18 per cent by the end of Q1 2024, up marginally from 17.9 per cent at the end of Q4 2023.
The central bank elaborated that this capital adequacy ratio comfortably exceeds the minimum requirement of 13 per cent, inclusive of a 2.5 per cent capital conservation buffer and a minimum Tier 1 capital requirement of 8.5 per cent, as stipulated under Basel III guidelines adopted by UAE banks since December 2017.
CBUAE: Driving financial resilience in the country
In other news, Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, and Chairman of the Presidential Court, emphasised the Central Bank of the UAE’s (CBUAE) role in fortifying the nation’s financial resilience and economic competitiveness in 2023.
In his foreword to the CBUAE’s Annual Report 2023, Sheikh Mansour marked the key role of the CBUAE in maintaining the UAE’s monetary stability and safeguarding the integrity of its financial system amid global economic shifts.
Sheikh Mansour highlighted the UAE’s robust economic performance, with a GDP growth of 3.6 per cent in 2023 and a projected increase to 3.9 per cent in 2024, driven by a resilient 5.4 per cent growth in the non-oil sector.
The UAE’s financial sector also recorded strong performance in 2023, achieving 11.1 per cent growth in total assets to over Dhs4tn. The country’s banking system also maintained appropriate capitalisation, strong profitability, and sufficient liquidity for the year
Sheikh Mansour applauded the CBUAE’s pivotal role in mobilising Dhs1tn in sustainable finance by 2030 and its proactive measures to mitigate climate-related risks, aligning with global green economy transitions.
The CBUAE’s strides in digital transformation, including the launch of Al Etihad Payments (AEP) and the UAE Domestic Card Scheme (Jaywan), alongside preparations for the Central Bank Digital Currency (CBDC) and Instant Payments Platform (Aani), were also highlighted.
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