The Board of Directors of the Central Bank reviews the strength and flexibility of the financial system and banking sector in the United Arab Emirates; Adopts a proactive flexibility package for financial institutions backed by Central Bank assets amounting to 1 trillion dirhams

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Abu Dhabi (UrduPoint / Pakistan Point News / WAM – 18 March 2026) headed by His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President and Vice President of the UAE prime ministerChairman of the Presidency courtAnd Chairman of the Board of Directors blackboard From the central managers Bank Subordinate United Arab Emirates (Central Bank), the Board of Directors held its second meeting for this year today.

The Council noted that the financial system in the United Arab Emirates has proven resilience during the current exceptional circumstances affecting the world and the region Markets Without any material impact on the health of the banking sector and payment systems.

The meeting was attended by the Vice Chairman of the Board of Directors, Abdul Rahman Saleh Al Saleh, Jassim Mohammed Bu Ataba Al Zaabi, and Khaled Mohammed Balamah. governor From the central bank. Board members Younis Haj Al Khouri, Sami Dhaen Al Qamzi, and Dr. Ali Muhammad Al Rumaithi were also present, in addition to His Excellency the Assistant Governors: Ahmed Saeed Al Qamzi and Ibrahim Al Sayed Muhammad Al Hashimi.

Building on its proactive approach, the Board, under the guidance of the Chairman, approved a comprehensive resilience package for financial institutions, designed to enhance the stability and resilience of the Group. United Arab Emirates The banking sector under exceptional global and regional circumstances. The Central Bank of the UAE, which oversees standard foreign transactions exchange Reserves exceeding Dirham 1 trillion (US dollars 270 one billionThe monetary base cover ratio of 119% confirms the strong foundations of the United Arab Emirates Dirham 5.4 trillion banking sector.

The total stock of liquidity held United Arab Emirates The banks in the central bank, in addition to their net assets eligible for traditional central bank operations, have reached approx Dirham 920 one billion (US dollars 250 one billion), which exceeds the reserve balances of banks Dirham 400 one billion (US dollars 109 one billion).

The Financial Institutions Resilience Package covers five key pillars that allow banks to access cash liquidity and provide additional flexibility to use excess liquidity and buffer capital to support the economy. United Arab Emirates economy:

Pillar 1: Monetary policy measures – enhancing access to reserve balances up to 30% of cash reserve requirements and the availability of term liquidity facilities in both. Dirham and US dollars.

Pillar Two: Liquidity and financing relief – Temporary liquidity relief and stable financing ratios to provide banks with greater flexibility to support the sector. United Arab Emirates economy.

Pillar 3: Capital Buffer Relief – Temporary release of the Countercyclical Capital Buffer (CCyB) and Capital Conservation Buffer (CCB) to support United Arab Emirates economy.

Pillar Four: Credit Risk Management – ​​Providing flexibility for banks to postpone classification of individual and corporate loans to customers affected by exceptional circumstances.

Fifth Pillar: Additional Support – Under the exceptional circumstances, and in view of the above-mentioned support, the Central Bank stresses the need for banks to continue providing the required financing services to support their customers and the national economy.

The Council reiterates its readiness to deploy the policy tools necessary to protect the stability of the financial system. It remains committed to maintaining and enhancing the contribution of the financial sector in the UAE to the national vision and competitiveness of the financial sector.

His Highness Sheikh Mansour bin Zayed stressed the role of the UAE’s vision in shaping the nation’s strength, including the economic and financial scene. He stressed: “The enduring financial and economic strength of the United Arab Emirates is rooted in the forward-looking vision of the leadership of the United Arab Emirates. The precautionary policies and proactive frameworks pursued by the Central Bank have consistently proven effective in enhancing the resilience and readiness of the financial and banking sector, while ensuring monetary and financial stability. These achievements represent a testament to the continued confidence in our system and the global competitiveness of the national economy of the United Arab Emirates.”

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