#UAE banks will be able to 'manage' COVID-19 economic shock - Central Bank | ZAWYA MENA Edition

UAE banks will be able to 'manage' COVID-19 economic shock - Central Bank | ZAWYA MENA Edition:

The coronavirus that continues to rage around the world and drags the global economy to a near standstill will test the strength of the UAE’s banking sector, but financial institutions will be able to “manage” the economic shock, a top official said.

The UAE Central Bank has just released its annual report for 2019, highlighting the “remarkable” performance of banks in the country despite last year’s turbulent external environment. The regulatory body said it is still too early to gauge the extent of the impact of the coronavirus on the local economy, but it stressed it is committed to intervene and help affected businesses.

“The outlook for 2020 is uncertain, marked by the global impact of the COVID-19 pandemic… The strength and resilience of the banking sector will be tested,” Central Bank governor Abdulhamid Saeed said in the report.

He, however, pointed out that in the past year, UAE banks remained sound with strong levels of capital and liquidity. The sector also witnessed major progress in the banking consolidation space and enjoyed a strong operating environment.