There is a significant demand from companies and individuals for financing applications

Banks operating in the country resumed their activities yesterday, after the Eid al-Fitr holiday, amid a significant demand from customers to visit the branches, and a return of momentum to financing requests, whether by companies or individuals. Bankers confirmed to Emirates Today that the measures recently taken by the Board of Directors of the Central Bank to support the banking sector would give banks great ability and flexibility in granting financing and supporting various sectors, noting that banks have extended Ramadan offers until after Eid al-Fitr for a period that has not been specified, but they are expected to remain until the end of this March.

They said that financing requests and bank transactions are somewhat calm during the last week of Ramadan every year, with dealers preferring to postpone any transactions until after Eid al-Fitr.

They pointed out that work was present yesterday in all bank branches, stressing that the movement of transfers and all electronic banking services operates efficiently and easily around the clock.

More momentum

In detail, banking expert, Ahmed Youssef, said that the recent decisions of the Central Bank’s Board of Directors came as usual in anticipation of any potential impacts on the economy, which gave banks more momentum and comfort in granting financing and supporting various sectors.

He added: “The financial sector in the country, with all its institutions, has accumulated experience over the past two decades, during which it dealt with a global financial crisis and the (Corona) pandemic, so there are no fears of major shocks thanks to the financial solvency and record levels of liquidity in banks, in addition to the recent support package.”

Youssef confirmed that “since the beginning of yesterday, banks have returned to resuming their activities after the Eid al-Fitr holiday,” noting that “despite the rain and weather fluctuations, transactions within the branches continued as they were, with customers, whether companies or individuals, requesting financing as usual after every holiday or occasion, as everyone prefers to start their transactions with the return of employees and the regularity of official work.”

Noticeable turnout

For his part, banker Tamer Abu Bakr said, “Work in the branches and main headquarters of the banks was in attendance yesterday, amid a noticeable turnout from customers who postponed their applications until after Eid al-Fitr, as they applied once to obtain various financing, which created some pressure on the sales staff.”

Abu Bakr continued: “There are no reservations on the part of bank administrations regarding granting financing. On the contrary, there is a desire to provide it with greater facilities, whether for individuals or companies, with the support of the recent decisions of the Board of Directors of the Central Bank,” pointing out that the movement of remittances is also smooth, and that electronic financial services operate around the clock with complete ease.

Extending offers

In turn, banker Mustafa Ahmed said: “Finance requests and transactions are usually somewhat calm during the last week of Ramadan every year, as dealers prefer to devote themselves to worship and celebrating the holiday, and then activity resumes, which is what happened yesterday, when demand was noticed again and the large number of dealers in the branches, in addition to an increase in communications with bank employees.” Ahmed added: “Work was present yesterday in all bank branches, with all employees continuing their work after a four-day holiday, after which momentum is expected to return more, especially since a large number of banks have extended Ramadan offers until after the Eid for a period that has not been specified, but it is expected that they will remain until the end of this March.”

Proactive support package

The comprehensive proactive support package recently approved by the Board of Directors of the UAE Central Bank included five main axes that allow banks to access cash liquidity and provide them with additional flexibility to use surplus liquidity and capital reserves, thus contributing to supporting the UAE’s economy.

These axes are: enhancing access to reserve balances up to 30% of the mandatory reserve requirements and providing forward liquidity facilities in dirhams and US dollars, in addition to temporarily reducing liquidity ratios and stable financing ratios to give banks greater flexibility to support the economy, in addition to reducing cyclical fluctuation buffers and capital protection buffers (CCB) to support the economy.

The fourth axis is to give banks flexibility to postpone the classification of the debts of individuals and companies to provide temporary facilities to customers in the banking sector affected by the exceptional circumstances, while the fifth axis is the Central Bank’s emphasis on the need for banks to continue providing the necessary financing services to support customers and the national economy.

Mustafa Ahmed:

• Work was present yesterday in all bank branches, with employees returning to work after a four-day holiday, after which momentum is expected to return to a greater extent.