The UAE banking sector is treading its way to solid growth, banking indicators from the central bank and other government and private financial agencies show.
Advances-to-deposit ratio (ADR), the difference between loans that banks have lent and their deposit base, has narrowed considerably as the ratio fell to 104.4 per cent in September from 109.9 per cent in January.
The loan-deposit gap went down to Dh43.5 billion from Dh90bn in January.
This is still above the 100 levels required by the Central Bank but is an indication that the gap is narrowing considerably in a short space of time, said Dubai Chamber in its economic note. “This is clear evidence that the prescribed level of the UAE Central Bank loan-to-deposit ratio of 100 per cent is becoming a reachable target,” it said. “On the whole, the banking sector is emerging in better shape in the months ahead with the outlook remaining upbeat.”