UAE banking sector cash assets rise to Dh800 billion

According to Amac news: The value of liquid assets at the end of the second quarter of 2024 was recorded at AED 801.52 billion, up 20.2 percent or AED 135 billion from the previous year, the Central Bank of the United Arab Emirates (CBUAE) said in a report.
The value of cash assets in the UAE’s banking sector increased by 2% or Dh14.9 billion compared to Dh786.6 billion at the end of the first quarter to 2024, according to the central bank report.
The bank said in its report that the value of cash assets in the banking sector accounted for 18.9 percent of total banking sector assets amounting to Dh4.244 billion at the end of the second quarter of 2024, up from 18.8 percent at the end of the first quarter of 2024.
The UAE banking system is well capitalized, with a total capital adequacy ratio of 18.3 percent at the end of the second quarter of 2024, up from 18 percent at the end of the first quarter of 2024 and 17.9 percent at the end of the fourth quarter of 2023, according to the report, has increased.
The capital adequacy ratio is much higher than the minimum capital adequacy ratio of 13 percent, which includes a capital shield of 2.5 percent and a minimum first-row capital ratio of 8.5 percent, set out in the central bank regulations based on regulatory compliance.
Supervisory capital ratios measure the amount of bank capital expressed as a percentage of risk-adjusted assets.
According to the Key Financial Health Indicators report, the Tier 1 capital ratio of the banking sector reached 17 percent at the end of the second quarter of 2024, compared to 16.7 percent at the end of the first quarter of 2024 and 16.6 percent at the end of the fourth quarter of 2023.
The first-row capital ratio of common stock has increased to 15.3% at the end of the second quarter of 2024, while it reached 15% at the end of the first quarter of 2024 and 14.9% at the end of the fourth quarter of 2023.