Banks to ensure continued flow of funds to creditworthy clients

Dubai - The Central Bank has projected gradual economic recover during 2021 and 2022 from the repercussions of the Covid-19 pandemic.

Wam file photo

By Waheed Abbas

Published: Tue 22 Jun 2021, 4:57 PM

Last updated: Tue 22 Jun 2021, 5:29 PM

Liquidity and capital buffers of banks remain adequate, supported by stable deposit volumes and growth in capital market funding, the UAE Central Bank said in a statement on Tuesday.

The apex bank’s assessment of the country’s financial system also found it stable, said the statement.

Khaled Mohamed Balama, Governor of the Central Bank of the UAE (CBUAE), held a meeting with the CEOs of all banks operating in the UAE to discuss the macroeconomic environment, provide the assessment of financial stability, and inform about the CBUAE’s ongoing regulatory and supervisory initiatives.

During the meeting with the CEOs, the governor emphasised that the banks will continue to support the UAE’s recovery by continuing to lend to creditworthy customers.

In order to support the UAE’s growth, Central Bank had extended its Targeted Economic Support Scheme (TESS) until June 30, 2022 so that banks can continue lending to support recovery.

“Our assessment and recent economic data point to a post-pandemic rebound of the UAE economy. The UAE banking system remains resilient, and our support measures in the form of the Targeted Economic Support Scheme and other measures will remain in place until the middle of next year. Against this background, we expect banks to support the economy and ensure a continued flow of funds to creditworthy retail and corporate clients,” said Balama.

The Central Bank has projected gradual economic recover during 2021 and 2022 from the repercussions of the Covid-19 pandemic. It expects the UAE GDP to grow by 2.4 per cent in 2021 and 3.8 per cent in 2022 and the non-oil GDP to expand by around four per cent in both years.

— waheedabbas@khaleejtimes.com