[ad_1]
The UAE Central Bank has affirmed its commitment to support continued economic recovery and that the withdrawal of support programs will be gradual and timely.
The bank said that with the support of the continued economic recovery, the UAE’s financial system is assessed as stable. The bank will continue to monitor the quality of bank assets and the adequacy of provisions.
The governor of the UAE Central Bank said the liquidity of the banking system was high and the banks’ capital reserves were at adequate levels.
He added: “In view of the gradual improvement in economic activity, the Central Bank will initiate a gradual and deliberate process of withdrawing from the support programs it has issued as part of the comprehensive targeted economic support plan, in order to not to negatively affect credit transactions and economic growth. “
“In the short term, the reduction in bank reserve requirements and the level of the loan-to-value ratio currently applied to first-time home mortgages will remain temporarily unchanged. The loan deferral program will be halted by the end of 2021, while that the use of the bank’s facilities will continue to be used. The Central Bank for zero-cost loans will grant new loans until mid-2022.
The bank said it will closely monitor the economic recovery and loan demand, and may consider extending these measures for a limited period to ensure the continued economic recovery.
Source link
