The Banking Executive Magazine - Issue 150, June 2021

UAE Financial System UAE FINANCIAL SYSTEM IS STABLE ECONOMIC RECOVERY LOOKS IMMINENT - CENTRAL BANK The UAE’s financial system is sta- ble and economic data points to a post-pandemic recovery. However, banks should support the recovery by ensuring flow of credit to the economy, UAE Central Bank Gov- ernor Khaled Mohamed Balama said. Liquidity and capital buffers of banks remain adequate, supported by stable deposit volumes and growth in capital market funding, he said during a meeting on Tues- day with all banks operating within the country. “Our assessment and recent eco- nomic data point to a post-pan- demic rebound of the UAE econ- omy. The UAE banking system re- mains resilient, and our support measures in the form of the CBUAE’s Targeted Economic Sup- port Scheme and other measures will remain in place until the mid- dle of next year,” Balama said in a statement issued by the monetary authority. “Against this background, we ex- pect banks to support the economy and ensure a continued flow of funds to creditworthy retail and corporate clients,” he added. Earlier in April, the central bank had said TESS, which was intro- duced last March to provide sup- port to businesses and households during the pandemic, would be ex- tended to June 2022. The programme’s zero-cost facility enables banks to access some 50 billion dirhams in funds to help customers get temporary relief in terms of their repayments and in- terest due on their borrowings. UAE has been aggressively vacci- nating its population to allow a re- turn of economic activity in the months leading up to the mega Expo event in October. the BANKING EXECUTIVE 20 ISSUE 150 JUNE 2021