UAE banking, financial sector resilient, robust, adapts to changes

In a recent media statement, Governor of the Central Bank of the UAE, Khaled Mohammed Balama, affirmed that the financial and banking sector in the country enjoys the highest levels of resilience and stability, and that banking, financial, and insurance institutions continue to provide their services to the public efficiently and regularly without interruption throughout the country, despite the ongoing circumstances.

He pointed out: “For over 53 years, the Central Bank of the UAE has built a distinguished track record of achievements. Thanks to the wise vision of the leadership, it has maintained the resilience, strength, and stability of the country’s financial and banking sector. Despite the successive geopolitical changes witnessed in the region during this period, the Central Bank and the UAE’s banking and financial sector have demonstrated a high degree of resilience, adaptability, and growth, reinforcing the UAE’s position as an attractive and safe destination and a leading financial center at both the regional and global levels.

“This remarkable journey reflects the strength of the foundations upon which the UAE’s financial and banking system is built, based on sound governance, discipline, financial and banking diversification, proactive risk management, and a high level of preparedness to address regional changes.

“The UAE’s banking and financial sector enjoys very high levels of capital adequacy and liquidity. The capital adequacy ratio stands at 17 percent, while the liquidity coverage ratio exceeds 146.6 percent, levels that surpass the regulatory requirements recommended by international bodies and organizations.

“The total assets of the UAE’s banking and financial sector, exceeding AED 5.42 trillion, underscore the substantial and robust financial positions of banking institutions and their ability to meet their obligations and continue supporting economic activity under all circumstances.

“I would like to emphasize that the banking systems, payment systems, and national financial infrastructure operate with complete efficiency and stability, supported by advanced operational and technological frameworks that ensure the smooth and secure continuity of banking and financial operations,” said Balama..

He added, “Banking and financial institutions operating in the UAE implement advanced frameworks for identifying and managing risks and ensuring business continuity, in accordance with the best international standards and practices. This enhances their ability to deal with potential changes and challenges efficiently and flexibly. The Central Bank of the UAE continues its ongoing coordination with relevant authorities and financial institutions to monitor developments and ensure full operational readiness and the uninterrupted continuity of financial and banking services.

“Based on our supervisory and regulatory role, we continuously monitor financial stability and liquidity indicators in the banking and financial sector. We conduct periodic assessments and stress tests to ensure the soundness of the banking and financial system. The Central Bank also possesses a comprehensive suite of monetary and prudential tools and policies that enable it to intervene in a timely manner to maintain the stability of the banking and financial sector and enhance confidence and reassurance. The Central Bank has played this role in various circumstances that the region has experienced.”

“In conclusion, I reaffirm the commitment of the Central Bank of the UAE to continue its role in monitoring developments, maintaining full readiness, and providing the necessary support to preserve the gains achieved over more than five decades of prosperity and to continue contributing to the development journey of the country,” said the governor.