The Central Bank of UAE’s data shows that loan growth slowed to 6.4% Y-o-Y in July from 6.7% Y-o-Y a month ago. Loan growth was flat M-o-M in July. Deposit growth was relatively stable at 3.5% Y-o-Y compared to 3.4% Y-o-Y in June. Deposits continued to decline on a M-o-M basis as they fell 0.5% in July after decreasing 0.8% in June. The M-o-M decrease in deposits was mainly due to a reduction in government deposits, which were down 7% M-o-M. Government deposits accounted for 11% of total deposits as of July. Sector’s liquidity was relatively stable compared to June with LDR at 96.6%. The lending to stable funding resource ratio rose to 88.6% from 87.7% in June, but it remains below regulatory ceiling of 100%. (Central Bank of UAE, Shabbir Malik, Murad Ansari)