Central Bank Reassures on Sector Stability
The Central Bank of the United Arab Emirates has reaffirmed the resilience and stability of the nation’s banking and financial system, despite ongoing regional challenges. Khaled Mohamed Balama, Governor of the Central Bank, assured the public that banks, insurance companies, and financial institutions across the UAE are operating smoothly, delivering services efficiently and without disruption.
A Strong Legacy of Stability
Governor Balama credited the sector’s enduring strength to more than five decades of sound governance and proactive risk management. “This enduring legacy reflects the strength of the foundations upon which the UAE’s financial and banking system has been built,” he said. According to Balama, the UAE’s financial ecosystem has consistently shown its ability to adapt and remain stable, even during periods of geopolitical uncertainty.
Impressive Financial Health Indicators
Underscoring the sector’s health, the Central Bank pointed to robust financial indicators. The UAE’s banking system currently boasts a capital adequacy ratio of around 17 percent and a liquidity coverage ratio exceeding 146.6 percent—both figures comfortably above international regulatory standards. The total assets of the country’s banking and financial sector have now surpassed Dh5.42 trillion, highlighting the sheer scale and capacity of these institutions.
Advanced Systems and Operational Readiness
Balama highlighted that the UAE’s banking systems, payment networks, and financial infrastructure continue to operate with full efficiency, bolstered by advanced technologies designed for secure, uninterrupted service. Banks and financial institutions in the country employ sophisticated frameworks for risk identification and management, as well as business continuity plans that align with global best practices.
Continuous Monitoring and Stress-Testing
The Central Bank remains in close coordination with relevant authorities and institutions, maintaining a proactive approach to monitoring stability indicators across the sector. Regular stress tests are conducted to ensure the resilience of the financial system under a variety of potential economic scenarios.
Commitment to Economic Growth
In closing, Governor Balama reaffirmed the Central Bank’s unwavering commitment to maintaining operational readiness and safeguarding the UAE’s financial stability, while continuing to support the nation’s long-term economic development.
