The UAE’s banking and financial sector remains stable and well-capitalised
The UAE’s banking and financial sector continues to demonstrate strong resilience and stability, according to Khaled Mohamed Balama, Governor of the Central Bank of the United Arab Emirates (CBUAE).
Balama said banks, financial institutions and insurance companies across the United Arab Emirates are operating normally and continue to provide services to customers and the public efficiently and without disruption nationwide.
He noted that for more than 53 years the Central Bank has built a distinguished legacy of achievements, playing a pivotal role in safeguarding the resilience, strength and stability of the country’s financial and banking system under the guidance of the UAE leadership’s vision.
Despite successive geopolitical developments across the region during this period, Balama said the Central Bank and the UAE’s financial sector have consistently demonstrated a strong capacity for resilience, adaptability and sustained growth. This, he added, has reinforced the UAE’s position as a trusted and secure destination as well as a leading regional and global financial hub.
Balama highlighted that the UAE banking sector maintains very strong levels of capital adequacy and liquidity. The capital adequacy ratio currently stands at around 17 per cent, while the Liquidity Coverage Ratio exceeds 146.6 per cent, both significantly above the regulatory thresholds recommended by international supervisory bodies and global financial institutions.
He also noted that the total assets of the UAE banking and financial sector now exceed AED5.42 trillion, reflecting the scale and strength of financial institutions operating in the country and their ability to meet obligations while continuing to support economic activity under varying conditions.
Financial and banking institutions in the UAE, he added, implement advanced frameworks for risk identification, risk management and business continuity in line with leading international standards and best practices, further strengthening their ability to respond effectively to potential developments and emerging challenges.
Balama said the Central Bank continues to maintain close coordination with relevant authorities and financial institutions to monitor developments and ensure full operational readiness, guaranteeing the uninterrupted provision of banking and financial services across the country.
He also emphasised that the Central Bank maintains a comprehensive framework of prudential and monetary policy tools, enabling it to take timely and appropriate measures when necessary to safeguard financial stability and reinforce confidence in the UAE’s banking and financial sector.
