UAE banking sector moves into surplus

The Board of Directors of Central Bank of the UAE held its 9th meeting for the year 2011 on Tuesday in Abu Dhabi under the chairmanship of Khalil Mohammed Sharif Foulathi, Chairman, and attended by Khalid Juma Al Majid, Deputy Chairman and Sultan bin Nasser Al Suwaidi, Governor.

The board reviewed a report submitted by Assistant Governor for Banking Supervision regarding the banking indicators, that show the UAE banking system moved from deficit position to surplus position in liquidity, i.e. it became net lender in the international money markets.

The board reviewed the report of the manager-in- charge of the Financial Stability Unit, which showed that banks are in a good position and should not be negatively impacted by the recent turmoil in international markets.

On the issue of the exchange rate policy, the board affirmed that the peg of the Dirham to the US dollar is continuing without change.

Furthermore, the board reviewed applications submitted by banks operating in the UAE to expand their businesses and open new branches, and reviewed applications from natural and juridical persons to establish companies/ establishments to undertake financial activities and money changing business. The Board approved the applications, which fulfill the terms as per the law and regulations, as applied to each business activity.

The board also reviewed some organisational matters relating to the Central Bank. The board then addressed the remaining items on its agenda and took decisions in respect thereof.

The meeting was also attended by board members Younis Haji Khoori, Mubarak Rashid Al Mansouri, Khalid Ahmed Al Tayer, Khalid Mohammed Salem Balama, Deputy Governor Mohamed Ali bin Zayed Al Falasi and Saeed Abdullah Al Hamiz, Assistant Governor for Banking Supervision and a group of senior Central Bank staff.

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