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Central Bank holds first meeting of the year

ABU DHABI - The Board of Directors of Central Bank of the UAE approved the limits of placements, dealings in foreign currencies and other engagements with banks and other financial institutions, which would ensure liquidity & minimize risks to Central Bank’s foreign currency reserves.

The Board held its 1^st meeting for the year 2013 on Tuesday, February 19, 2013 in Abu Dhabi under the chairmanship of Khalifa Mohammed Al Kindi, Chairman of the Board, and attendance of Khalid Juma Al Majid, Deputy Chairman, Sultan Bin Nasser Al Suwaidi, the Governor, and other Board Members.

The Board reviewed a report submitted by the Governor on the steps taken with regard to the US Foreign Account Tax Compliant Act (FATCA), in accordance with US established laws. The Board Reviewed results of the questionnaire sent out by the Central Bank to banks and finance companies operating in the UAE, regarding real estate mortgage loans to individuals, as per the formula presented by the UAE bankers Association. The Board instructed management to proceed with completion of procedures for issuance of the regulation.

The Board also reviewed draft of the internal regulation for board of directors’ governance, and requested introduction of some amendments thereto.

The Board also reviewed a report submitted by the Banking Supervision Department showing the financial position of banks and other financial institutions. The report included a detailed statement of basic figures, along with an assessment of the financial and regulatory status of each of the banks operating in the UAE.

The Board reviewed report of the Assistant Governor for Monetary Policy and Financial Stability. The report showed the overall prudential ratios of the banking system, financial stability, Central Bank data and liquidity. The report confirmed that banking indicators are considered positive and that banks are in a good financial position, as they enjoy excellent capital adequacy.

Furthermore, the Board reviewed applications submitted by banks & other financial institutions operating in the UAE for extension of their activities and opening new branches. The Board approved the applications that fulfill the terms and conditions as per the law and regulations applicable to each business activity.

The Board then addressed the remaining items on its agenda and took decisions in respect thereof.