Adopted the criteria for banks’ exposure to the real estate sector..and approved the system of banks owning their shares

The Central Bank is studying a program to localize leadership positions

Mansour bin Zayed during his presidency of the fifth meeting of the Board of Directors of the Central Bank.

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His Highness Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister, Minister of Presidential Affairs and Chairman of the Board of Directors of the Emirates Central Bank, chaired the fifth meeting of the Board of Directors of the Central Bank for the current year, which was held at Qasr Al Watan yesterday.

His Highness Sheikh Mansour bin Zayed Al Nahyan welcomed the attendees and thanked the bank for the efforts made in all its sectors and senior and executive management to maintain financial stability in the banking sector.

His Highness also praised the plans for the next stage, which are in line with the country's economic and future aspirations towards digital inclusion and the green financial system, which the Central Bank is working to achieve at the highest levels of quality, in line with international best practices, so that the UAE remains a forerunner and pioneer at the regional and international levels.

The meeting reviewed the follow-up report on the implementation of the decisions and directives issued by the Board in its previous meetings, and the decisions that were taken by passing.

The Council also approved the estimated budget of the Central Bank for the year 2022.

Rehabilitation of citizens

In turn, the governor's assistants and senior Central Bank employees gave a presentation on the Central Bank's strategy for the years 2023-2026, which included all sectors of the Central Bank and the details of their work and roles entrusted to them.

The Council approved the plan: “Vision, mission, strategic objectives, strategic indicators and the most prominent projects and initiatives.” It also discussed a proposal to prepare a study for a program to qualify citizens within controls and plans to localize leadership and key positions in the banking and insurance sector, and fill important positions in banks and insurance companies by qualified citizens. .

Payment systems

The Council completed the meeting’s agenda by approving the policy of the retail payment system (RPS), the high value payment system (LVPS), and card systems (CS). It approved the requests submitted by some financial institutions operating in the country, as the Council took the necessary decisions in this regard.

stored value

The Council approved the extension of the transition period for the “Stored Value Facility” (SVF) system, and agreed to extend the transition period for licensed “PSP” payment service providers, to comply with the requirements of the new SVF system, for a period of six months ending on March 30, 2022. The Council also approved The system of «banks owning their shares».

The Council took the necessary decisions regarding these regulations, issuing and publishing them to start working with them as soon as possible, because of the importance of this in the interest of sustainable stability and economic growth at the level of institutions and individuals.

exposure criteria

On the other hand, the Board of Directors approved standards for banks’ exposure to the real estate sector, to be implemented as of December 30, 2021. The standards for banks’ exposure to the real estate sector will improve the definition, measurement and supervision of real estate exposure, based on a clear methodology.

The monitoring and review period will be applied as a minimum until the end of 2022, before applying these standards.

During the monitoring period, the banks will be subject to an enhanced supervisory review and evaluation, which will require the banks to implement and strengthen their internal policies with regard to granting loans, appraisal, and managing real estate exposure risks.

Economic support

The Council reviewed a report on the latest developments in the Central Bank’s plan for economic support directed “TESS” to contain the repercussions of the “Covid-19” pandemic and the amendments made to it, and approved the launch of the Central Bank for new updates and amendments, to be added to the components of the current support plan, in accordance with the revised standards of the plan.

As part of the support plan, the easing of capital, liquidity and stable funding requirements will be extended from December 30, 2021 to June 30, 2022, and this applies to all banks operating in the UAE.

National Payment Systems Strategy

The Board of Directors of the Central Bank approved the strategy of the National Payment Systems “NPSS” the third stage, and to move forward with it, provided that the necessary measures are taken by the relevant executive departments of the Central Bank to implement and work with a focus on leading strategic initiatives related to payments, including, for example For example, the implementation and operation of the financial market infrastructure, “which includes the instant payment platform and other payment systems.”

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