|10 January, 2019

Total banks' reserves at UAE Central Bank hits $77.22bln

Total banks' reserves at the Central Bank of UAE indicated a growth of 4.3%

People walk outside the main branch of UAE Central Bank in Abu Dhabi, October 16, 2012.

People walk outside the main branch of UAE Central Bank in Abu Dhabi, October 16, 2012.

REUTERS/Ben Job

ABU DHABI - Total banks' reserves at the Central Bank of the United Arab Emirates increased to AED283.4 bn by the end of November 2018, a growth of 4.3 percent from AED271.6 bn during the same month of 2017.

The growth reflects the robust solvency position of the UAE banking sector and its compliance with international standards, including Basel III.

According to CBUAE figures, banks' reserves have been growing steadily since the beginning of 2018, hitting a total of AED267 bn in H1, before snowballing to AED283.4 bn by the end of year.

The certificates of deposits held by UAE banks, valued at AED125.8 bn by the end of November 2018, account for 44 percent of aggregate reserves, while reserve requirements comprised 42.9 percent, or AED121.8 bin and current accounts of banks stood at 13.1 percent, or AED35.8 bn.

The CBUAE stipulates 8.5 per cent Tier 1 ratio in compliance with Basel III guidelines. In introducing these Capital Adequacy Regulations, the CBUAE intends to ensure that banks’ capital adequacy is in line with revised rules outlined by the Basel Committee on Banking Supervision in ‘Basel III. To this end, banks are required to manage their capital in a prudent manner. It is important that banks’ risk exposures are backed by a strong capital base of high quality in order to ensure the stability of the financial system of the UAE.

© Copyright 2019 Emirates News Agency (WAM) Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.

More From Business