Abu Dhabi: The Central Bank of the UAE Monday announced that it has been in consultation with Dubai Government over the last two weeks, and the Central Bank is pleased to see the Dubai Government announcement regarding Nakheel Sukuks issued Monday. The UAE Central Bank reaffirmed its position that it stands behind UAE banks, including those with exposure to Dubai World and Nakheel. The Central Bank, in a press release, stated that UAE Banking System is comprised of retail commercial banks only, with a strong base of retail deposits, the best banking model that weathered the current Global Financial Crisis.
From the consolidated balance sheet of banks, Interbank deposits of the UAE Banking System constitute 10.3% of the liabilities side, with foreign interbank deposits constituting 5% only. The UAE Banking System is more sound and liquid than a year ago, with foreign interbank deposits and MTN//ECPs issued by UAE banks stand reduced by 25% .
