Some bank deposits at commercial banks (demand deposits) are part of the M1 money supply (a country's physical currency plus demand deposits and other liquid assets held by the central bank and calculated by it.
We grew our deposits by 21 per cent as more customers trusted us with their money and our loans and advances grew by 14 per cent by - availing Shs344 billion of new credit to key sectors of the economy such as manufacturing, agriculture and personal lending - where we provided more than 40 per cent of new lending."
Loans refer to debts provided by a financial institution for a particular period while advances are the funds provided by the banks to the business to fulfil working capital requirement which is to be payable within one year.
"In the year 2019, the banking industry registered a growth in loans/ credit facilities spread across most sectors with Real Estate and Construction accounting for 20.2 per cent of the total industry loan book followed closely by trade and commerce at 19.2 per cent, personal & household loans at 18.4 per cent, followed by agriculture and manufacturing at 13.5 per cent and 12.8 per cent respectively," said UBA.
A bank has assets such as cash held in its vaults and monies that the bank holds at the central bank ("reserves"), loans that are made to customers, and treasury bills and bonds.
