The UAE’s banking sector remains strong and resilient despite several challenges posed by global economic developments last year, according to the 2019 annual report of the Central Bank of UAE (CBUAE).
“Despite the turbulent external environment, the UAE’s banking sector remained sound in 2019 with strong levels of capital and liquidity,” said Abdulhamid Saeed the Governor of CBUAE, in his message in the 2019 annual report.
The Governor said the banking sector will be facing a more challenging 2020. “The outlook is uncertain, marked by the global impact of the COVID-19 pandemic, both in terms of human lives, health and the economic activity,” said Saeed.
“The strength and resilience of the banking sector will be tested, and the CBUAE shall continue to play its role in terms of guiding the banking sector through this period, with active intervention in various facets ranging from liquidity, capital adequacy and other policy measures to ensure we continue to help the business environment in the UAE, with a special focus on small and medium enterprises.”
Balance-sheet growth
The UAE’s banking sector witnessed major progress on consolidation last year with 7.5 per cent growth in gross assets to Dh3.08 trillion. Total credit grew 6.2 per cent to Dh1.75 trillion compared to 2018’s Dh1.65 trillion. For underlying domestic credit, the lending growth was mainly driven by lending to the government sector, which increased by 34 per cent as well as to government-related entities, which rose 10 per cent.
Gulf News
05/05/2020
