The Central Bank of the UAE has approved a comprehensive financial resilience package aimed at reinforcing the stability of the country’s banking sector, as global and regional markets face heightened uncertainty.
Chaired by His Highness Sheikh Mansour bin Zayed Al Nahyan, the Board’s second meeting of the year underscored the UAE financial system’s ability to withstand current pressures without any material impact on banking operations or payment systems.
The newly approved Financial Institution Resilience Package introduces five key pillars designed to ensure liquidity, maintain lending activity, and support economic growth. These include expanded access to reserve balances, temporary relief on liquidity and funding ratios, and the release of capital buffers to enable banks to extend credit more effectively.
Additional measures provide flexibility in managing credit risk, allowing banks to defer loan classifications for customers affected by ongoing market conditions. The Central Bank also reiterated its expectation that banks continue financing individuals and businesses to sustain economic momentum.
The UAE banking sector remains underpinned by strong fundamentals, with total assets reaching AED 5.4 trillion. Foreign exchange reserves exceed AED 1 trillion, while liquidity held by banks with the Central Bank stands close to AED 920 billion, reflecting a robust financial position.
Sheikh Mansour highlighted that the UAE’s economic resilience is rooted in forward-looking leadership and proactive policymaking, noting that such measures continue to strengthen confidence in the country’s financial system.
The Central Bank affirmed its readiness to deploy further tools if needed, reinforcing its commitment to financial stability and long-term economic competitiveness.
News Source: Emirates News Agency
