T+ T – Normal size
The Central Bank of the Emirates revealed the presence of abundant lending capacity in the country’s banking system, indicating that the sector has maintained its flexibility while providing sufficient buffers to protect capital and liquidity, as financing and liquidity indicators in general remained favorable during the second quarter of this year.
The Central Bank added that the strong growth in resident deposits continued to contribute to strong liquidity and financing reserves, as indicated by the main lending and financing indicators and financing indicators, and the strong loan-to-deposit ratio that reached 78%.
The Central Bank pointed out the improvement in the asset quality ratios of state banks, as the net non-performing loan ratio and the non-performing loan ratio decreased to 2.3% and 5.4%, respectively, as asset quality benefited from the improvement in the dynamics of writing off non-performing loans.
The Central Bank indicated that credit risk swaps in Dubai remained stable at 65 basis points in the first and second quarters of 2024. It stated that the Emirate of Abu Dhabi still enjoys one of the lowest credit risk swap premiums in the Middle East and Africa region, as it recorded about 41 basis points in June. In the past, the level of credit risk swaps for the Emirate of Abu Dhabi remained low at the end of the first half of this year, which reflects its dynamic economy and the strength of its financial position.
