ID :
26967
Tue, 10/28/2008 - 12:57
Auther :
Shortlink :
https://oananews.org//node/26967
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Banking system confidence boosted by government measures: UAE Central Bank Governor
Abu Dhabi, Oct 28, 2009 (WAM) - The Central Bank Governor, Sultan bin Nasser Al-Suwaidi, has said that banks in the UAE used only 15% of the first tranche of the total facility of Dh50 billion bailout facility provided by the Central Bank, and this, he added, shows that the banks do not need more liquidity.
He pointed out that the measures taken by the government to pump in Dh70 billion more into the economy and to provide guarantee for assets had boosted the confidence of the banking system in the country. He warned that the global financial situation is still precarious and should not be taken for granted. He urged banks to remain cautious.
Al-Suwaidi made the statement to the press on the fringe of the two-day forum organised by the Arab Monetary Fund to discuss issues related to financial stability and developments in banking control. He said the Central Bank had not directly determined which sectors the banks must provide facilities to although there were directives that the money should not be pumped into new mega projects.
The Central Bank Governor defended his outfit's stance on the way some banks dealt with the issue of breaking into bank accounts of some customers. He said, before the problem arose, the Central Bank was working to come up with a unified security network system for all banks in the country.
He said the rate of breaking into bank accounts in the UAE was very low compared to other countries of the world, adding that this cannot be blamed on the hacking of the UAE electronic telecom system because it does not save the ATM card numbers, but serves only as a conduit between the banks, moreover, the codes are changed every half a minute.
He pointed out that the Central Bank had stopped cash withdrawal service via ATM cards from a number of countries as a precautionary measure, but did not mention which countries they are.
Al-Suwaidi said he expects a growth rate of 6.6% in 2008/2009 and warned investors against moving their monies abroad in view of the current situation, adding that leaving the money at home is the best option and provides the best dividend.
He noted that the UAE had taken enough measures to stave-off the impact of the global crisis by providing for the banks facilities for their deposit at the Central Bank and additional facilities for bonds and deeds, in addition to the government's measures of providing guarantee for bank deposits.
For his part, the Director General of the Arab Monetary Fund, Dr. Jasim Al-Manae, said the forum will help widen the scope of sharing experience among the officials on issues related to banking control in Arab countries, adding that it will also help achieve inter-members cooperation on issues related to the implementation of the Basel 2 standards.
He said there was the need for the programme of the forum to include a number of issues and latest developments in banking control, adding that Arab central bank governors and heads of monetary establishments had demanded, during their last meeting held in Marrakesh earlier this month, the need to study the causes of the current financial crisis and to come up with supervisory rules and practices that would help achieve financial stability.
He pointed out that the measures taken by the government to pump in Dh70 billion more into the economy and to provide guarantee for assets had boosted the confidence of the banking system in the country. He warned that the global financial situation is still precarious and should not be taken for granted. He urged banks to remain cautious.
Al-Suwaidi made the statement to the press on the fringe of the two-day forum organised by the Arab Monetary Fund to discuss issues related to financial stability and developments in banking control. He said the Central Bank had not directly determined which sectors the banks must provide facilities to although there were directives that the money should not be pumped into new mega projects.
The Central Bank Governor defended his outfit's stance on the way some banks dealt with the issue of breaking into bank accounts of some customers. He said, before the problem arose, the Central Bank was working to come up with a unified security network system for all banks in the country.
He said the rate of breaking into bank accounts in the UAE was very low compared to other countries of the world, adding that this cannot be blamed on the hacking of the UAE electronic telecom system because it does not save the ATM card numbers, but serves only as a conduit between the banks, moreover, the codes are changed every half a minute.
He pointed out that the Central Bank had stopped cash withdrawal service via ATM cards from a number of countries as a precautionary measure, but did not mention which countries they are.
Al-Suwaidi said he expects a growth rate of 6.6% in 2008/2009 and warned investors against moving their monies abroad in view of the current situation, adding that leaving the money at home is the best option and provides the best dividend.
He noted that the UAE had taken enough measures to stave-off the impact of the global crisis by providing for the banks facilities for their deposit at the Central Bank and additional facilities for bonds and deeds, in addition to the government's measures of providing guarantee for bank deposits.
For his part, the Director General of the Arab Monetary Fund, Dr. Jasim Al-Manae, said the forum will help widen the scope of sharing experience among the officials on issues related to banking control in Arab countries, adding that it will also help achieve inter-members cooperation on issues related to the implementation of the Basel 2 standards.
He said there was the need for the programme of the forum to include a number of issues and latest developments in banking control, adding that Arab central bank governors and heads of monetary establishments had demanded, during their last meeting held in Marrakesh earlier this month, the need to study the causes of the current financial crisis and to come up with supervisory rules and practices that would help achieve financial stability.
