Page 417 - Sustainable Cities and Communities Design Handbook

390 Sustainable Cities and Communities Design Handbook

1.4% in 2010, reaching 972.1 billion AED 41 (264.6 billion USD), which in-
dicates the bank’s general cautiousness in lending to the economy. Lending to
the government maintained its upward trend, which is in line with the gov-
ernment’s continued expansionary policies [100 billion AED (27.2 billion
USD) in 2010]. Lending for construction decreased 2.6% in 2010, whereas the
credit extended for real estate mortgage loans increased 15%. Moreover, stress
tests on aggregate banking data indicate resilience to shocks in spite of
nonperforming loans doubling since the crisis.
Effective bank governance is fundamental to support financial sector
soundness. In light of the government’s control of banks and the banks’ high
exposure to GREs, a clear governance framework is needed to safeguard the
banks’ financial integrity.

Selected Monetary and Banking Indicators (in AED)
December 2009 March 2010
Total Bank Assets (net of provisions) a 1519.1 1533.1
Certificate of Deposits held by Banks 71.9 63.3
Bank Deposits 982.6 967.0
Loans and Advances: (net provisions) a 1017.7 1022.0
Personal Loans 209.8 212.2
Letters of Credit 102.8 104.2
Total Private Funds (Capital þ Reserves) b 231.4 252.8
Specific Provisions for Nonperforming Loans 32.6 34.4
General Provisions 10.7 13.7
Total Investments by Banks
Capital adequacy ratiodBanking System 19.2% 20.3%
Banking Institutions (Total Numbers)
UAE Incorporated Banks
Head Offices 24 23
Branches 674 687
Electronic Banking Service Units 25 25
Pay Offices 71 73
Foreign Banks
Head Offices 28 28
Branches 82 82
Electronic Banking Service Units 43 45
ATMs 3599
a
Net of interest in suspense, specific provisions, and general provisions.
b
Excluding current year profit.
Based on United Arab Emirates: Selected Issues and Statistical Appendix, IMF Country Report No. 12/136,
June 2012.
The Central Bank of the UAE has also made important progress in
strengthening its financial stability approach, reorganizing the regulatory
framework and developing macroprudential policies. 42

41. 2010 data from the Central Bank of the UAE.
42. See footnote 30.