UAE lends support to banks as regional conflict continues
The UAE Central Bank has rolled out a resilience package to support the 1.1 trillion-dollar local banking sector and boost liquidity as the ripple effects of the ongoing Iran conflict continue to spread across the region’s financial sector.
The measures permit lenders to access reserve balances of up to 30% of the cash reserve requirement and availability of term liquidity facilities in both dirham and dollar denominations. Banks have been granted temporary relief in liquidity and stable funding ratios for greater flexibility.
The initiative is also offering the temporary release of the countercyclical capital and capital conservation buffers. Banks can also delay classifying retail and corporate customer loans affected by “extraordinary circumstances” as non-performing, according to a statement issued Tuesday.
Free, in under 30 seconds
Join thousands of professionals reading Salaam Gateway — the Global Islamic Economy Gateway.
Already a member? Sign in
- 5 free articles every month
- Weekly Islamic-economy newsletter
- Save articles to read later
Salaam Gateway