The Central Bank of the United Arab Emirates confirmed that it is obligated by law to ensure the necessary protection for consumers, to maintain the stability of the banking system, and to constantly monitor the credit situation in the United Arab Emirates.
In order to reduce the negative effects of the spread of the Corona virus (Covid-19) on the economy to a minimum, the Central Bank has formed a committee to communicate with the Federation of Banks in the country to assess the credit situation and find appropriate solutions.
To reduce the effects of the Corona virus on credit, financial institutions are expected to implement measures such as rescheduling loans, granting temporary delays to monthly loan payments, and reducing fees and commissions for affected clients. Banks and finance companies remain fully responsible for their credit decisions.
Financial institutions operating in the country enjoy good capitalization and are in a position to support clients affected by the virus without jeopardizing its safety and financial stability.
To ensure the readiness of the financial sector of the United Arab Emirates for any possible escalation of the Corona virus, the Central Bank advises all banks and finance companies to review and update their business continuity plans.
The central bank continues to monitor the situation closely, and will provide further guidance and guidance if needed.