Banks operating in the United Arab Emirates extended AED14.5 billion in new loans and credit facilities during September, according to fresh figures.
The figure indicates the abundant liquidity of the local banks and more flexible lending criteria to stimulate economic growth, the UAE central bank says.
The bank adds that most of September’s loans and credit facilities went to the private sector.
According to the figures, published by Al Ittihad, the value of credit facilities portfolio extended to non-residents dropped by AED2.1bn during September to stand at AED112.2bn.
The government’s share in the local credit facilities retreated by roughly AED3.5bn in September to reach AED166.4bn.
Furthermore, deposits with the country’s banks surged by an additional AED6bn to a total of AED1.43 trillion, driven by higher deposits by residents.
The total value of the local banking system’s assets dipped by 0.4 per cent in September to AED2.42trn.
Moreover, local banks increased their reserves with the central bank by AED4bn to AED217bn, while required reserves dropped by AED300m to stand at AED110.6bn.