The Central Bank of the UAE has introduced a comprehensive “resilience package” to support the banking sector and wider economy amid ongoing regional uncertainty.
The package gives banks enhanced access to liquidity, including reserve balances of up to 30% of cash requirements, alongside term funding in both dirhams and US dollars. It also allows temporary flexibility in capital buffers and liquidity ratios to ensure continued lending to businesses and consumers.
Backed by more than AED 1 trillion in foreign exchange reserves, the measures are designed to reinforce the strength of the UAE’s AED 5.4 trillion banking sector. The framework spans five key pillars, including monetary policy support, funding relief, capital flexibility and credit risk management.
Officials said the initiative builds on the UAE’s track record of proactive financial intervention, helping banks maintain stability while continuing to support economic activity during periods of global and regional stress.
Gulf Economist Staff Writer