CBUAE Releases New Low-risk Regulations for Specialised Banks

The Central Bank of the United Arab Emirates (CBUAE) has released new regulations for specialised banks in order for them to operate in line with a low credit risk model. Specialised banks in the UAE are allowed to provide their services only to nationals and residents and should conduct their activities only in AED.

Why it Matters?

The regulator stated that the objective of these new regulations is to provide a regulatory framework in which specialised banks operating in the UAE’s financial sector can do so in a robust and prudent manner. Banks that are licensed under these new regulations are allowed to offer varied financial activities that serve the local community – such as account opening, card issuance, and retail and wholesale lending. They can be...