Loan-to-deposit ratio (LDR) of UAE lenders fell from 94.8 per cent in September 2018 to 94.4 per cent at the end of the last quarter of 2018, as deposits overtook loans during the monitored period.
Wednesday 13, March 2019 BY KUDAKWASHE MUZORIWA
The Central Bank of the UAE said that banks in the Emirates have maintained their financial integrity during the last quarter of 2018 following the enforcement of Basel III Standards, according to local newswire, WAM.
Basel III is a global, voluntary regulatory framework on bank capital adequacy, stress testing and market liquidity risk.
The regulator stated that banks operating in the UAE boast high profitability and a robust financial profile, with capital adequacy ratio, first tranche and ordinary share correspondence to first tranche, hitting 18.2 per cent, 16.9 per cent, and 14.9 per cent respectively, which is much higher than the regulatory requirements set by the CBUAE.
Additionally, the loan to deposit ratio stood at 94.7 per cent and 93.1 per cent at conventional and Islamic banks respectively.
UAE banks’ liquid assets ratio increased from 16.1 per cent by the end of the third quarter to 17.4 per cent by the end of the fourth quarter of 2018, with total liquid assets standing at AED 35.4 billion up from that recorded until the end of Q3.