CBUAE: UAE banking sector enjoys resilience and stability

Five decades of financial strength

Balama stated that over more than five decades, the Central Bank has built a remarkable track record of achievements that helped maintain the resilience and stability of the UAE’s financial system. Guided by the country’s leadership, the sector has demonstrated flexibility and growth despite regional geopolitical developments, reinforcing the UAE’s position as a secure and attractive global financial hub.

Solid foundations and governance

He explained that the strength of the UAE’s financial system is built on solid foundations, including sound governance, financial diversification, disciplined regulation, proactive risk management, and high preparedness to address regional and global changes.

High capital adequacy and liquidity

The governor highlighted that the UAE banking sector maintains strong financial indicators, with a capital adequacy ratio of 17% and a liquidity coverage ratio exceeding 146.6%, both surpassing international regulatory requirements.

Banking assets exceed AED 5.42 trillion

Balama pointed out that the total assets of the UAE’s banking and financial sector exceed AED 5.42 trillion, reflecting the strength of financial institutions and their ability to meet obligations while continuing to support economic activity.

Advanced financial infrastructure

He added that the UAE’s banking and payment systems, along with the national financial infrastructure, operate with high efficiency and stability thanks to advanced technological and operational frameworks that ensure secure and seamless financial transactions.

Strong risk management and coordination

Balama emphasized that financial institutions in the UAE implement advanced risk identification and management systems and maintain strong business continuity frameworks aligned with international best practices. The Central Bank also continues close coordination with relevant authorities and financial institutions to monitor developments and ensure uninterrupted financial services.

Continuous monitoring and preparedness

The governor noted that the Central Bank constantly monitors financial stability indicators and conducts regular stress tests to ensure the soundness of the banking system. He added that the bank possesses a comprehensive set of precautionary monetary tools enabling timely intervention to maintain stability and strengthen public confidence.

Commitment to long-term stability

Concluding his remarks,  Balama reaffirmed the Central Bank’s commitment to monitoring developments, maintaining full readiness, and supporting the continued stability and growth of the UAE’s financial sector while contributing to the nation’s ongoing development.