UAE Central Bank forms panel to resolve dispute

DUBAI - In a move to authenticate its regulatory governance over the operations of banking industry, UAE Central Bank recently formed a technical committee to resolve the administrative and managerial dispute that cropped up in the Commercial Bank International, according to a source.

By Salah Eldin Eltayeb

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Published: Tue 7 Sep 2004, 9:16 AM

Last updated: Thu 2 Apr 2015, 12:50 PM

The Central Bank has dissolved the board of the bank and assigned a new board to take up the job, he added. The new board will temporarily run the operation until further notification.

The row started when major individual shareholders asked for a bigger representation in the board to enable them to chalk out the bank's financial policies.

The problem complicated so much that needed the intervention of the Central Bank which dissolved the board and appointed new members to pilot the bank's businesses. The new board is now presided over by Abdullah Yousef with few members of the previous board. The Central Bank will continue to supervise the bank's administrative and managerial conduct and the overall performance of the bank.

“The central bank's timely intervention has solved the problem which would have aggravated into a serious issue affecting the financial position of the bank. It would have been a serious problem had the central bank didn't take the initiative," said the source.

"The UAE market is very sensitive to any changes happening in the banking sector, therefore it became necessary for the central bank to intervene in the matter. In the last decade, UAE has become a significant financial and commercial centre for the entire region, hence the role of the Central Bank will be highly cherished to maintain the banking sector operations. Most importantly the UAE is now be in the running to be the headquarter for the coming AGCC Central Bank to be established before 2006 to oversee and implement the unified Gulf currency,” he said.

“Commercial Bank International source confirmed that the bank daily and routine operations have not been affected by the change, on the contrary things are running very smoothly and exquisitely.”

He added that the bank is running so well that the public are not aware of the changes took palce. The bank's financial position is well established and it is doing pretty well, we are waiting for the final decision whether the CB will allow the newly selected members to continue running the bank or not.

The 150 million shares of the bank belong to a wide range of sharing Groups including individuals, institutions floating and Government, said the source.

Commercial Bank International is a public company with limited, incorporated in Ras Al Khaimah to carry on retail and commercial banking activities in the UAE. The bank is operating in accordance with an Emiri degree No 5/91 and is headqurtered in Dubai with branches in Ras Al Khaimah and Abu Dhabi. The paid up capital was increased in 1998 from Dh115 million to Dh129.4 million. Seven million shares were proposed to the 1998 , General Assembly, this brings the total number of shares up to 150 million shares in 1999, stated Shuaa Capital PSC.

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