Bank's Non-Interest Income to Total Income for United Arab Emirates

DDEI03AEA156NWDB • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

46.49

Year-over-Year Change

40.39%

Date Range

1/1/2000 - 1/1/2021

Summary

This economic trend measures the ratio of non-interest income to total income for banks in the United Arab Emirates. It provides insights into the diversification of bank revenue streams beyond traditional lending activities.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

The bank's non-interest income to total income ratio is a key indicator of the financial health and business model of the banking sector in the UAE. It reflects the degree to which banks generate revenue from fees, commissions, trading, and other non-interest sources rather than relying solely on interest income from loans.

Methodology

This data is collected and calculated by the World Bank from regulatory filings and national banking authorities.

Historical Context

Policymakers and market analysts closely monitor this trend to assess the resilience and adaptability of the UAE's banking industry.

Key Facts

  • The UAE banking sector is highly profitable, with an average return on assets of over 1.5%.
  • Non-interest income accounts for over 30% of total bank revenue in the UAE.
  • The UAE has enacted policies to encourage banks to diversify their revenue streams.

FAQs

Q: What does this economic trend measure?

A: This trend measures the ratio of non-interest income to total income for banks operating in the United Arab Emirates. It provides insights into the diversification of bank revenue streams beyond traditional lending activities.

Q: Why is this trend relevant for users or analysts?

A: The bank's non-interest income to total income ratio is a key indicator of the financial health and business model of the banking sector in the UAE. It reflects the degree to which banks are able to generate revenue from fees, commissions, trading, and other non-interest sources.

Q: How is this data collected or calculated?

A: This data is collected and calculated by the World Bank from regulatory filings and national banking authorities in the United Arab Emirates.

Q: How is this trend used in economic policy?

A: Policymakers and market analysts closely monitor this trend to assess the resilience and adaptability of the UAE's banking industry, which is a critical component of the country's economic diversification efforts.

Q: Are there update delays or limitations?

A: The World Bank publishes this data with a lag of approximately 1-2 years, so the most recent figures may not fully reflect the current state of the UAE banking sector.

Related Trends

Citation

U.S. Federal Reserve, Bank's Non-Interest Income to Total Income for United Arab Emirates (DDEI03AEA156NWDB), retrieved from FRED.