(MENAFN- Arab Times) The Central Bank of the UAE has decided to further study the issue of large exposure to corporates, as banks seek more time to implement the proposed regulations.
Khalifa Mohammed Al Kindi presiding over the meeting of the board of directors of the Central Bank of the UAE. - Supplied photo
The board of directors of the Central Bank of the UAE reviewed several banking issues at a meeting held recently. The top decision making body at the central bank discussed the proposals submitted by the UAE Bankers Association, which in its recommendations asked to exclude the bonds/sukuks from the scope of the new guidelines on large exposure to corporates, and sought five years delay in its implementation.
The board reviewed the opinion of the banks on the limits of ratios, which form large exposures and instructed a study by the central bank's experts and submission of recommendations for approval.
More coins to be minted as demand climbs
Staff Report
ABU DHABI - The Central Bank of the UAE has decided to mint new quantities of currency coins of smaller denominations as their usage have increased specially after the introduction of paid parking.
The board of directors of the central bank approved a summery submitted by the Banking Operations & Payment Systems Department that sought approval to re-mint coins of denominations Dh I, 25 fils and five fils due to a drop in the stock.
"The higher usage of coins is resulted from the wide spread of malls and co-ops in the UAE, where use of currency coins increased through parking fees payment machines and vending machines," the central bank of the UAE said in a statement on Sunday. Talking on the issue, a trader said the use of currency coins of Dh1 and 50 and 25 fils denominations was very common, but with the introduction of paid parking no doubt the usage has increased manifold.
But, the minting of five fils coins seems to be a measure in order to keep enough stocks of a legal tender currency, which is even though not in circulation, he said, ans adding that it is the responsibility of the central bank to maintain sufficient quantity of its stocks as it has not been withdrawn, as yet.
He said that shop keepers while charging customers round off to a nearest denomination of coin. For instance, "We would charge Dh7.50 against a sale of Dh7.85, or Dh8, for a thing with a price tag of Dh7.95 to make the transaction happen, and the customers understands it. We lose some, we gain some," he said.
A motorist agreed the rise of using coins in his life, as he has to keep coins to pay parking fee, to avoid inconvenience.
Meanwhile, the central bank said it is minting a commemorative silver coin to commemorate Central Bank's 40th anniversary (1973-2013) to mark its role in the regulating the banking and financial sector.
- haseeb@khaleejtimes.com
The central bank's reserve management policy was also reviewed and the board gave its approval to some of the amendments to further improve the policy.
The board discussed a report on monetary policy and financial stability, overall prudential ratios of the banking system and the central bank data and liquidity. The officials took note of the latest developments on the draft of the mortgage loans regulation, which had previously been referred to the concerned agencies for study and feedback, and instructed follow-up with them.
The board also took note of the final proposed amendments to the liquidity regulations and instructed a final review of them in preparation for approval and issuance as soon as possible. Draft amendments to the money changers regulation also came up for review, and the directors instructed the formation of a committee to follow-up amendments and report developments to the board.
The directors took note of the steps taken in the establishment of a 'Risk Management Unit' at the central bank, and reviewed the proposal submitted by the governor regarding IT policy structure. The board also reviewed the internal audit department's quarterly report for March 2013 and the external auditor's report on the financial statements as of March 31, 2013.
The meeting was chaired by Khalifa Mohammed Al Kindi, chairman of the board, and attended by deputy chairman Khalid Juma Al Majid and governor Sultan bin Nasser Al Suwaidi.
The meeting was also attended by Younis Haji Al Khoori, Khalid Mohammed Salem Balama, Khalid Ahmed Altayer, Hamad Mubarak Bu Amim, and Mohamed Ali bin Zayed Al Falasi, deputy governor; Saeed Abdullah Al Hamiz, assistant governor for banking supervision; and other top officials of the central bank.
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