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Monday, 8 August 2016

Liquidity tightening in UAE banking sector moderates | GulfNews.com

Liquidity tightening in UAE banking sector moderates | GulfNews.com:

"The UAE’s banking sector has been experiencing tightening of liquidity from last year. Monetary data for first half of 2016 showed the liquidity situation is moderating compared to the first half of 2016, according to a report from Abu Dhabi Commercial Bank (ADCB).
“The continued squeeze in dirham liquidity was reflected in Emirates interbank offered rates (Eibor) rising further and the loan to deposit ratio increasing to 103.3 per cent in June from 100.9 per cent in December 2015. However, the differential in the pace between credit and deposit growth narrowed in 1H2016, and greater external borrowing [bonds, syndicated loans, and deposits] also helped to limit upside pressure,” said Dr Monica Malik, Chief Economist of ADCB.
The GCC region’s access to capital received support in the second quarter of 2016 by the stronger oil price, the Fed keeping rates on hold, and sentiment towards emerging markets improving."



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