Risk survey shows banking sector healthy

The UAE Ministerial Committee yesterday presented an overview of the banking sector since September 2008 and stated that the committee, along with national banks, have discussed the results of a risk survey conducted to support the banks. "This survey was done to assess the banks' capabilities as benchmarked with national standards and global best practices," the committee said.

At the meeting chaired by Obaid Humaid Al Tayer, Minister of State for Financial Affairs, and attended by Sultan bin Nasser Al Suwaidi, Governor of the Central Bank and Younis Haji Al Khoori, Director-General, Ministry of Finance, the committee approved an inter-bank deposit guarantee scheme yesterday.

The meeting was also attended by senior representatives of nationals banks.

Apart from getting Cabinet approval for revision of the Bankruptcy Law and establishing a credit bureau, the committee also decided to allow more financial instruments, especially in the debt capital market.

"Under the strategic direction of President His Highness Sheikh Khalifa bin Zayed Al Nahyan, Ruler of Abu Dhabi, and His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, our assessment has reassured us that the UAE banking sector is stable and firmly on the growth path," Al Tayer said.

"We are following a clear path that encourages and supports national banks to move forward with confidence. We have also observed that the liquidity status of UAE's national banks is excellent," he added. The committee will continue to monitor and review the financial sector's performance through bi-weekly meetings.

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