Business | Banking
Banking sector remains strong in UAE
Capital of banks and their reserves represent 11.02% of the assets which is considered high, official says
- By Ahmed A. Elewa, Senior Reporter
- Published: 23:29 October 11, 2008
- Market mayhem will hit banks hard
- Russia to invest $6.6b, Putin says
- Morgan Stanley shares plummet
- Libya to withdraw $7b from Geneva
- Central banks put $120b into markets
- Mohammad reassures investors
- Meltdown: US will work 'with partners'
- Developing nations blast West
- Panic causes Asian stocks to plunge
Abu Dhabi: The UAE banking sector remains strong with solid fundamentals including 77.4 per cent of secure financing resources, Central Bank Governor Sultan Bin Nasser Al Suwaidi said in a statement on Saturday.
His statement comes at a time when global leaders are trying to devise a rescue plan for the crisis-ridden global financial institutions.
About 75 per cent of bank deposits are held by UAE nationals, while inter-bank deposits stand at 12.7 per cent of total assets.
"For the assets side, the majority of assets of national and foreign banks operating in the UAE are in the UAE and their parties are known and sound, contrary to what the situation is in other economies where most of the parties in those countries are unknown," he said before departing for Washington to attend the annual meetings of the board of governors of the IMF and World Bank.
"The capital of banks and their reserves represent 11.02 per cent of bank assets, which is considered high according to Basel II standards."
The governor explained that local governments hold substantial percentages in many banks, consequently the matter was solved in the UAE a long time ago.
Related Links
However, some officials have cautioned that UAE banks are on the verge of a serious crisis due to a Dh500 billion shortage of funding, senior bankers revealed yesterday.
Business Editor's choice
-
Do unemployment figures flatter to deceive?
Jobseekers and recruiters give out mixed signals ranging from optimism to downright despair even as official data show recovery
-
Banks can increase their share
Longer opening hours, more locations outside cities and lower charges can help
-
Geepas idea blossomed in Dubai
The journey led from a small shop in Bahrain to a $1.27b company in the UAE
