His Excellency Khalid Mohammed Balama, Governor of the Central Bank of the UAE, assured that the financial and banking sectors are exhibiting remarkable strength and stability, with banking institutions, financial companies, and insurance services continuing to operate normally and efficiently throughout the country.
Trust and Stability
In a statement, he noted that for over 53 years, the Central Bank of the UAE has marked a journey filled with achievements, maintaining the resilience, robustness, and stability of the nation’s financial and banking system thanks to the prudent vision of its leadership. Despite the successive geopolitical changes in the region during this period, the central bank and the nation’s banking and financial sectors have shown great resilience, adaptability, and growth, solidifying the UAE’s position as a safe, attractive destination and a leading financial center both regionally and globally. This successful journey reflects the strong foundations upon which the country’s financial and banking system is built, grounded in good governance, discipline, financial diversity, proactive risk management, and a high level of readiness to address regional changes.
Financial Soundness
The statement continued that the UAE’s banking and financial sectors maintain very high levels of capital adequacy and liquidity, with a capital adequacy ratio of 17% and a liquidity coverage ratio exceeding 6.6%. These levels surpass the regulatory requirements set by international bodies. The total assets of the banking and financial sector in the UAE, which exceed 5.42 trillion dirhams, reflect the substantial strength of its financial institutions and their ability to meet obligations while supporting economic activity during all circumstances.
He reaffirmed that the banking systems, payment systems, and the national financial infrastructure are functioning with complete efficiency and stability, backed by advanced operational and technical frameworks that ensure smooth and secure financial operations.
Operational Readiness
Furthermore, he mentioned that financial institutions operating in the country are employing advanced frameworks for identifying and managing risks and ensuring business continuity, aligning with the best global standards and practices, enhancing their capability to address potential changes and challenges with efficiency and flexibility. The Central Bank of the UAE continues to coordinate actively with relevant authorities and financial institutions to monitor developments and ensure full operational readiness and uninterrupted financial and banking services.
Ongoing Oversight
According to the statement, in light of its regulatory and supervisory role, the central bank continuously monitors financial stability indicators and liquidity levels in the banking and financial sectors, conducting regular assessments and stress tests to ensure the safety of the banking system. The central bank has a comprehensive set of precautionary monetary tools and policies that allow timely intervention to maintain stability and boost confidence in the banking and financial sectors, a role it has fulfilled in various circumstances faced by the region.
Commitment
In conclusion, the statement reiterated the Central Bank of the UAE’s commitment to continue monitoring developments and ensuring complete readiness while providing necessary support to maintain the achievements made over more than five decades of prosperity and to contribute further to the nation’s developmental journey.