Overview
- The Central Bank of the UAE approved a resilience package to reinforce banking stability in light of regional conflict and global uncertainty, with measures now in effect.
- Banks gain enhanced access to reserve balances up to 30% of the cash reserve requirement and can draw on term liquidity facilities in dirhams and dollars.
- Temporary relief covers liquidity and stable funding ratios plus the release of the Countercyclical Capital Buffer and the Capital Conservation Buffer to sustain lending.
- Credit risk measures allow banks to postpone classifying affected retail and corporate loans, with lenders directed to continue providing required financing services.
- The package is backed by more than Dh1 trillion in FX reserves, while banks hold nearly Dh920 billion in liquidity at the central bank, including over Dh400 billion in reserve balances, and the regulator stands ready to deploy further tools if needed.