UAE banks have built up sufficient reserves and boosted their capital base after the 2008 global financial distress and this will enable them to withstand a fresh crisis in the future, the central bank chairman has said.
Khalil Foulathi said stress tests conducted by the International Monetary Fund on the UAE’s 23 national banks and 28 foreign units showed they are highly capitalized and in a “good health.”
His figures showed UAE banks’ Tier 1 capital adequacy far exceeds the global requirement of eight per cent as it stands at 12 per cent. He said some banks in the second largest Arab economy are even capitalized at as high as 20 per cent.
Khalil Foulathi said stress tests conducted by the International Monetary Fund on the UAE’s 23 national banks and 28 foreign units showed they are highly capitalized and in a “good health.”
His figures showed UAE banks’ Tier 1 capital adequacy far exceeds the global requirement of eight per cent as it stands at 12 per cent. He said some banks in the second largest Arab economy are even capitalized at as high as 20 per cent.
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