ID :
65355
Thu, 06/11/2009 - 14:08
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https://oananews.org//node/65355
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Ministerial Committee meets all banks to discuss liquidity of the UAE banking sector
In its third meeting since inception with all UAE banks, the UAE Ministerial Committee yesterday discussed the liquidity of the UAE banking sector and the changes that have been seen after the ministerial committee announced its actions to support the sector. In the meeting, the UAE Ministerial Committee presented an overview of favourable developments in the banking sector since September 2008 while the national banks provided an update on their current position regarding liquidity and their perspectives on the national banking sector.
In addition, the UAE Ministerial Committee and national banks discussed the results of a risk survey conducted to support the banks in developing their risk management agenda. This survey was done to assess the banks' capabilities as benchmarked with national standards and global best practices. The meeting was chaired by H.E. Obaid Humaid Al Tayer, Minister of State for Financial Affairs, joined by HE Sultan bin Nasser Al-Suwaidi, Governor of UAE Central Bank, Younis Haji Al Khoori, Director General, Ministry of Finance and attended by the leaders and senior management of all national banks in the UAE.
"Under the strategic direction of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, our assessment today reassured us that the UAE banking sector is stable and firmly on the growth path. We are following a clear path that encourages and supports the UAE national banks to move forward with confidence. We have also observed that the liquidity status of UAE's national banks is excellent," said Al Tayer, Minister of State for Financial Affairs while commenting about the results of the meeting.
The UAE Ministerial Committee was established with a number of objectives aimed to ensure the health of the financial sector in the UAE. It has thus far taken several steps to ensure the continued strength of the sector. Some of these include the AED50 billion capital injection into the financial sector to ensure sufficient liquidity and conversion to Tier 2 capital and announcements of a number of preventative and supportive measures for banks. These measures have been phrased as conditions to the injection, on capitalization and on reporting, and are aimed at strengthening the banking sector through 2009 and 2010.
The UAE Ministerial Committee has also announced inter-bank deposit guarantee programme to increase confidence in the sector. The committee announced the addition of financial instruments, approval from Cabinet on revising bankruptcy law, public debt law and also got approval to set up a credit bureau. The committee continues to monitor and review the financial sector performance in the UAE through bi-weekly meetings.
In addition, the UAE Ministerial Committee and national banks discussed the results of a risk survey conducted to support the banks in developing their risk management agenda. This survey was done to assess the banks' capabilities as benchmarked with national standards and global best practices. The meeting was chaired by H.E. Obaid Humaid Al Tayer, Minister of State for Financial Affairs, joined by HE Sultan bin Nasser Al-Suwaidi, Governor of UAE Central Bank, Younis Haji Al Khoori, Director General, Ministry of Finance and attended by the leaders and senior management of all national banks in the UAE.
"Under the strategic direction of His Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the UAE and His Highness Sheikh Mohammed bin Rashid Al Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, our assessment today reassured us that the UAE banking sector is stable and firmly on the growth path. We are following a clear path that encourages and supports the UAE national banks to move forward with confidence. We have also observed that the liquidity status of UAE's national banks is excellent," said Al Tayer, Minister of State for Financial Affairs while commenting about the results of the meeting.
The UAE Ministerial Committee was established with a number of objectives aimed to ensure the health of the financial sector in the UAE. It has thus far taken several steps to ensure the continued strength of the sector. Some of these include the AED50 billion capital injection into the financial sector to ensure sufficient liquidity and conversion to Tier 2 capital and announcements of a number of preventative and supportive measures for banks. These measures have been phrased as conditions to the injection, on capitalization and on reporting, and are aimed at strengthening the banking sector through 2009 and 2010.
The UAE Ministerial Committee has also announced inter-bank deposit guarantee programme to increase confidence in the sector. The committee announced the addition of financial instruments, approval from Cabinet on revising bankruptcy law, public debt law and also got approval to set up a credit bureau. The committee continues to monitor and review the financial sector performance in the UAE through bi-weekly meetings.
