Tuesday 18 September 2018

Term deposits in UAE banks rise by $5.4bn

ABU DHABI, September 15, 2017

Medium and long-term deposits in UAE banks increased by Dh19.9 billion ($5.4 billion) by the end of the first seven months of 2017, bringing to Dh210 billion the total deposits held the banking sector, a growth of 7 per cent over the corresponding period last year.

Medium and long-term bank deposits now make up 27 per cent of the total term deposits, valued at Dh782 billion, according to UAE Central banks statistics released by the end of July, reported Wam, the Emirates official news agency.

The growth is attributed to the Central bank's decision to raise the deposit interest rate following the US Federal Reserve's 1.5 per cent interest rate hike for the second time since the beginning of 2017. Bank deposits now represent a safe haven commensurate in value with other investment vehicles, including shares and real estate, according to market analysts.

The total value of six-month to one-year deposits now hit Dh153.7 billion, 11.5 per cent up from the end of last year.

Deposits of more than one year jumped in value to Dh56.3 billion by the end of July, a 7.6 per cent up compared to December 2016.

Data released by the Central Bank don't include interbank deposits but rather cover government deposits.

Tags: UAE banks |

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