Governor of the Central Bank: The banking and financial sector in the UAE is flexible, robust and ready to keep pace with regional changes
Abu Dhabi, 5 March / WAM / His Excellency Khalid Mohammed Al-Amaa, Governor of the Central Bank of the Emirates, confirmed that the financial and banking sector enjoys the highest levels of strength and stability, and that banking and financial institutions and insurance companies naturally continue to provide their services to the public efficiently and regularly without interruption throughout the country.
He stressed that the Central Bank of the United Arab Emirates has for more than 53 years been a journey full of achievements, during which it was able, thanks to the wise vision of the wise leadership, to maintain the flexibility, strength and stability of the country’s financial and banking position. Despite the successive geopolitical changes that the region witnessed during that period, the Central Bank and the country’s banking and financial sector demonstrated a high capacity for flexibility, adaptation and growth, which strengthened the UAE’s position as an attractive and safe destination and a leading financial center at the regional and global levels.
His Excellency added that this busy journey reflects the strength of the foundations on which the country’s financial and banking system was built, based on good governance, discipline, financial and banking diversification, proactiveness in risk management, and high readiness to deal with regional changes.
He pointed out that the banking and financial sector in the UAE enjoys very high levels of capital adequacy and cash liquidity, with the capital adequacy ratio reaching 17%, while the liquidity coverage rate exceeds 146.6%, which are levels that exceed the regulatory requirements recommended by international bodies and organizations.
His Excellency explained that the total assets of the banking and financial sector in the country, which exceed 5.42 trillion dirhams, are the magnitude and strength of the financial positions of banking institutions and their ability to fulfill their obligations and continue to support economic activity at various times and circumstances.
He stressed that the banking systems, payment systems and national financial infrastructure operate with complete efficiency and stability, supported by advanced operational and technical frameworks that ensure the continuity of banking and financial operations smoothly and safely.
His Excellency stated that the banking and financial institutions operating in the country apply advanced frameworks to identify and manage risks and business continuity in accordance with the best international standards and practices, which enhances their ability to deal with variables and potential challenges efficiently and flexibly, stressing that the UAE Central Bank continues continuous coordination with the relevant authorities and financial institutions to follow developments, and ensure full operational readiness and the continuity of financial and banking services without being affected.
His Excellency said, based on our supervisory and regulatory role, we continuously monitor indicators of financial stability and cash liquidity in the banking and financial sector, and we conduct periodic assessments and stress tests to ensure the safety of the banking and financial system. The Central Bank also has an integrated system of tools and precautionary monetary policies that enable it to intervene in a timely manner to maintain the stability of the banking and financial sector and enhance levels of confidence and reassurance, as the Central Bank played this role in the various circumstances that the region went through.
His Excellency added: In conclusion, I renew the commitment of the Central Bank of the Emirates to continue its role in monitoring developments and full readiness and providing the necessary support to preserve the gains achieved over more than five decades of prosperity and to continue to contribute to the development process of the country.
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