Arab News, Tue, Mar 12, 2024 | Ramadan 2, 1445
Technology strengthening financial system in UAE, says central bank
Emirates:
The financial system in the UAE is more secure and efficient than ever before
thanks to the widespread implementation of technology, according to the
country’s central bank.
In its report for the fourth quarter of 2023, the
institution said that technological and structural advancements in the country’s
banking system have elevated operational efficiency and accessibility of
mobile applications and online banking.
The Central Bank of the UAE revealed that the
number of automated teller machines in the country increased to 4,654 by the end
of 2023, compared to 4,426 in the same period of the previous year.
At the end of the fourth quarter of 2023, the
number of locally incorporated banks, excluding those focused on investment,
remained constant at 22, while branches of these financial institutions in the
country decreased to 489, compared to 498 at the end of 2022.
Similarly, the number of electronic service units
of these banks fell to 46 units by the end of 2023, while the number of cash
offices remained constant at 21 compared to the preceding year.
The number of Gulf Cooperation Council banks stood
at six by the end of the fourth quarter of 2023. The branches of these banks
also remaiedn constant at six branches at the end of December 2023.
The number of other foreign banks in the UAE
remained unchanged at 22, with 66 branches by the end of 2023.
The report further noted that the total M1 money
supply, which consists of currency, demand deposits and other liquid deposits
including savings deposits, reached 829.3 billion dirhams ($225.7 billion) at
the end of 2023, representing a 12.4 percent rise compared to 2022.
The total M2 money supply, which includes the cash
people have in hand plus all the money deposited in checking accounts, savings
accounts and other short-term saving vehicles, increased by 18.8 percent year on
year by the end of the fourth quarter of 2023 to reach 2.02 trillion dirhams.
Similarly, the total M3 money supply, which
includes M2 plus government deposits with banks operating in the UAE as well as
with the central bank, rose to 2.44 trillion dirhams at the end of the fourth
quarter of 2023, representing a rise of 16 percent compared to the year-ago
period.