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Dubai: United Arab Emirates' banks increased lending to consumers by 11 per cent in the first quarter from the previous quarter as interest rates tracked the US Federal Reserve downwards.
Personal loans in the first quarter amounted to Dh48.4 billion ($13.2 billion) compared with Dh43.5 billion in the previous quarter, the Central Bank of the UAE said on its website on Saturday. Consumer loan growth in the fourth quarter was 6 per cent.
The UAE pegs its currency to the dollar forcing it to follow interest-rate movements in the US. The Federal Reserve has lowered its benchmark rate seven times since September to 2 per cent.
UAE bank assets increased 9 per cent to Dh1.34 trillion in the first quarter from Dh1.23 trillion in the fourth quarter, the central bank said. Deposits increased 7.4 per cent to Dh774 billion.
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