UAE banking system sound: Central Bank
Financial Stability Report 2018 finds banks liquid and well capitalised
Dubai: The Central Bank of the UAE (CBUAE) has launched the most recent edition of the UAE Financial Stability Report (FSR).
CBUAE noted that the UAE banking system remains sound, with sufficient capitalisation and liquidity reserves, solid financial performance and high operating efficiency. Additionally, the regulatory stress test demonstrated that the UAE banking system also remains resilient to potential macro-financial instability.
“Looking at our achievements in 2018, an important milestone for us was the issuance of the Decretal Federal Law No. (14) of 2018 regarding the Central Bank & Organisation of Financial Institutions and Activities. The law further demonstrates our commitment to the stability of the financial system. Also, in 2018, we established the Financial Stability Policy Committee (FSPC) which facilitates the thorough fulfilment of this objective,” said Mubarak Rashed Al Mansoori, Governor of CBUAE.
CBUAE cautioned banks on potential risks from both global and regional financial instabilities. “Although the macro-financial outlook remains supportive of financial stability, CBUAE reminds members of the financial system to be mindful of potential global and regional macro-financial opportunities. To ensure the continued resilience of the financial sector, CBUAE continues to further enhance the regulatory and supervisory framework of the banking system,” the central bank said in a statement.