'UAE banks do not need further support'

The UAE banks do not need further support from the Central Bank and the government as there has been an improvement in their financial position in recent months, the Central Bank Governor said yesterday.

Sultan bin Nasser Al Suwaidi also announced the UAE would stick to the dollar peg and to its position not to join a monetary union to be launched by other members of the Gulf Co-operation Council (GCC).

Speaking to reporters, Suwaidi acknowledged that the Central Bank is about to enforce one of the toughest rules on capital adequacy for banks by the end of June but defended it as a measure to strengthen the banking sector. "If you ask me about the need for more support to the banks in the UAE, I would say the banks no longer need any support at this stage… the situation has largely improved," he told reporters at the Central Bank.