Apex bank reviews steps to establish EIBOR

ABU DHABI - The Board of Directors of Central Bank of the UAE reviewed in its 11th meeting for the year 2009 a report presented by the Senior Executive Director of Treasury Department regarding the monetary position,

By (Wam)

Published: Sat 29 Aug 2009, 9:01 PM

Last updated: Tue 10 Jan 2023, 8:25 AM

Which summarized the steps taken by Central Bank to establish an EIBOR in the UAE.

The EIBOR panel will consist of 11 banks. The initiation of new procedure has already assisted in reduction in the current market rates. The bank amended the eligibility requirement for REPO transactions of CDs of 14 days remaining maturity for CDs issued by the Central Bank and owned by Commercial Banks. The Bank also extended the application of the official REPO rate of 1% from one week to 1 month. These changes will provide banks with increased liquidity at a lower cost.

Chaired by H.E. Khalil Mohammed Sharif Foulathi, the Board reviewed the report submitted by Senior Executive Director of Banking Supervision and Examination Department regarding the banking indicators and heard a presentation by the Senior Manager of UAESWITCH Division on the UAESWITCH system and the services it provides through GCC switches, in addition to projects aimed at development of UAESWITCH.

Furthermore, the Board reviewed applications submitted by banks operating in the UAE to expand their businesses and open new branches, and reviewed applications from natural and juridical persons to establish companies/ establishments to undertake financial activities and moneychanging business. The Board approved the applications, which fulfill the terms as per the law and regulations, as applied to each business activity.

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

The meeting was attended by H.E. Dr. Omar Mohammed Ahmed Bin Sulaiman, Deputy Chairman, H.E. Sultan Bin Nasser Al Suwaidi, the Governor, and members of the Board.