Central Bank of the UAE is Confident that Country’s Banking System Will Withstand Any Shock

The Central Bank of the United Arab Emirates (CBUAE) has reported that the country's banking system is well-capitalized and able to endure both the effects of the COVID-19 pandemic, as well as declining oil prices. 

CBUAE gave this statement in response to a warning from rating agency Moody's Investors Services (Moody’s) that the pandemic and declining oil prices would cripple UAE's banking sector profits. Moody's had stated that it projects the provisions against loan losses of Gulf banks to increase sharply.

In its response, CBUAE noted that the stress tests of UAE’s banking sector demonstrate its resilience and ability to withstand macro-financial shocks of any magnitu...