United Arab Emirates’ local banks extended AED3.5 billion in new loans and credit facilities during September, most of which went to the private sector, according to new data.
Most borrowers were private sector companies while government entities borrowed only AED400 million in October, central bank data shows.
The credit facilities portfolio of local banks stood at AED1.482bn at the end of October while the value of deposits portfolio amounted to AED1.435bn; meaning there is a gap of AED46.6bn the two portfolios.
The data, published by Al-Ittihad newspaper, indicates that the value of allocations local banks set aside for doubtful loans increased by AED1.1bn in October to reach a total of AED73.7bn.
The overall balance of personal loans edged down by AED100m in October to AED329.6bn, dropping for the first time since November last year.
Deposits with local banks dropped by AED1.4bn at the end of October to a total of AED1.435bn, the figures reveal.
Furthermore, required reserves with the central bank surged by AED900m during the same month.