Bank deposits face drop

Bank deposits have decreased by 0.4% during the month of May 2011, reaching AED 1,123.5 billion. Meanwhile, total bank loans and advances decreased by 0.5%, reaching AED 1,048.7 billion, and total bank assets increased by 0.5%, reaching AED 1,703.5 billion at the end of May of the same year. The money supply M1, which is currency in circulation, plus monetary deposits, which are the current accounts and call accounts at banks, decreased by 0.2%, from AED 261.2 billion to AED 260.6 billion. The money supply M2 which comprises M1 plus quasi-monetary deposits which is the sum of resident time and savings deposits in Dirhams, commercial prepayments in Dirhams and resident deposits in foreign currencies, has decreased by 1.1%, from AED 850.5 billion as at the end of April 2011 to AED 841.1 billion at the end of May of the same year. Money supply M3 decreased by 0.6%, from AED 1,076.1 billion at the end of April 2011 to AED 1,070.0 billion at the end of May of the same year. During the first five months of 2011, intermediary monetary aggregate M2 as well as bank deposits have increased by 7.0%, while bank loans and advances increased by 1.7%. Total bank loans and advances decreased by 0.5%, reaching AED 1,048.7 billion, and total bank assets increased by 0.5%, reaching AED 1,703.5 billion at the end of May of the same year.