(MENAFN- Emirates News Agency (WAM))
ABU DHABI, 20th August, 2017 (WAM) --The banking sector increased their statutory reserves at the UAE Central Bank by AED8.6 billion during H1, 2017, bringing to AED125.5 billion the total required reserves by the end of June 2017, according to CB statistics.
Statutory reserves are the minimum liquidity banks are required to hold against client deposits without getting interests in return.
The required minimum level of compulsory reserves now stands at 14 percent on current, savings and demand accounts, and 1 percent on term deposits.
In a move reflecting banks' commitment to keep high solvency ratios, required reserves have been progressively growing over the first six months of the year, rising by AED1.9 billion to AED118.7 billion in February and to AED119.9 billion by the end of March.
The month of June was the top performer as compulsory reserves surged by AED3 billion, with May's levels up AED2 billion and AED699 million in April.
Compulsory reserves are among the tools used by banks to achieve their fiscal policies in addition to other vessels, including overdrafts, advance facilities, fraud preventive measures, certificate of deposits, Certificates of Deposit Repurchase Agreement, REPO, and liquidity support facilities.
WAM/Hatem Mohamed
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