UAE banks' loan-deposit gap widens to $16bn

Data from the UAE's central bank has indicated that overall loans by banks in the country have exceeded deposits by Dhs59.2bn ($16.1bn) in February, rising from Dhs47.1bn in January, Bloomberg has reported. Total bank loans rose 0.2% in February from January to Dhs1.02 trillion, while bank deposits fell 1% over the same period to Dhs958.3bn, the data showed. The 3-month Emirates interbank offered rate, the rate banks charge each other for three month loans, has risen 34 basis points this month to 2.2888%, the highest in more than seven months.