COVID-19 Impact Pushes UAE Central Bank to Introduce an AED 100 Billion Stimulus Package Aimed at the Banking Sector

COVID-19 Impact Pushes UAE Central Bank to Introduce an AED 100 Billion Stimulus Package Aimed at the Banking Sector

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The Central Bank (CB) of the United Arab Emirates (UAE) announced an AED 100 billion stimulus package to support the economy and ensure sufficient liquidity within the banking sector.

The CB stated that all banks would be able to utilise up to 60% of their capital conservation buffers, with this ratio at 100% for the systematically important banks. The stimulus package also looks to lower the holding capital requirement of banks for loans to SMEs, by 15-25%.

The financial assistance should allow the banks to maintain sound lending standards over the next few months, and treat all customers in a fair manner, said the CB.

The CB advised banks to...