Growth of bank liquidity

Paper money (Union)

Yousef Al-Bastanji (Abu Dhabi)

Qualified liquid badets in banks rose by 6.5%, up 32 billion dirhams in 3 months, to reach 521 billion dirhams at the end of June, against 489 billion dirhams at the end of March, according to the central bank. Qualified liquidity is liquidity of banks, current account balances and deposits with the Central Bank, investments in certificates of deposit and loans between state banks and loans granted to banks. State whose deadline is 3 months. Wadah al-Taha, a member of the Securities and Investment Institute's UK advisory board, said that a qualified liquidity, which is clbadified as high quality liquidity, is considered the most important indicator. important for ensuring the stability of the banking sector, which reinforces the confidence of banks and the stability of monetary policy in the country. One of the most important elements to attract more bank deposits in the sector in the country and is an important attraction for foreign investment. Al-Taha explained that the introduction of Basel III standards in banks operating in the country, forcing the sector to maintain high levels of liquidity at any time, has led to this growth, which shows the capacity of banks countries to adhere to the best international standards to ensure the security of the banking sector.
Wael Abu Moheisen, chief executive officer of Global Equity & Bonds, said that maintaining the high percentage of qualified liquidity by banks, which accounted for 17.6% of total bank badets at the end of June 2019, was a challenge. initially, because it adds to the total cost of existing funds. In the banking sector, which is a temporary reduction factor in interest rates. "The strength of the banking sector, its strength and its long-term solvency, can overcome this challenge.The financial strength of the sector allows it to obtain a high credit rating that allows banks to borrow and to offer bonds and instruments in international markets to obtain low interest funds Increases the ability of the banking sector to cope with local and external competition in the next phase and major pillar to stimulate the growth of the national economy.