UAE banks’ reserves up 7% in Q1

abu dhabi — In yet a fresh sign of the country’s robust financial infrastructure, the UAE banks’ reserve requirements picked up 7.7 per cent during first quarter of 2020 to Dh132.6 billion as compared to the corresponding period in 2019, statistics by the Central Bank of the UAE have shown.

According to a CBUAE report, the required reserves have been steadily growing over the recent months. In December 2019, they increased to Dh129.7 billion from Dh126.2 billion in September same year.

In January 2020, the required reserves climbed to Dh130.8 billion, edging down to Dh130.1 billion in February, before rebounding to Dh132.6 billion in March. Earlier this month the CBUAE reduced banks’ reserve requirements for demand deposits by 50 per cent to support the country’s economy during the Covid-19 pandemic. This will inject liquidity of about Dh61 billion, which can be used to support banks’ lending to the UAE economy and their liquidity management. The CBUAE has further extended the duration of the Targeted Economic Support Scheme (TESS), for affected retail and corporate customers.