UAE- Central bank okays limits on foreign currency placements

(MENAFN- Khaleej Times) The UAE Central Bank has approved the limits of placements, dealings in foreign currencies with banks and other financial institutions, which would ensure liquidity and minimise risks to central bank's foreign currency reserves. The board of directors which met here reviewed a report submitted by the Governor Sultan bin Nasser Al Suwaidi on the steps taken with regard to the US Foreign Account Tax Compliant Act (FATCA), in accordance with US established laws. Chairman of the Board Khalifa Mohammed Al Kindi chaired the meeting. The board reviewed results of the questionnaire sent out by the central bank to banks and finance companies operating on real estate mortgage loans to individuals. The UAE Banks Federation had replied to the questionnaire on behalf of the banks giving their unified opinion on the maximum loan to value limit and other issues. The board instructed management to proceed with completion of procedures for issuance of the regulation. The directors reviewed draft of the internal regulation for board of directors' governance, and suggested some amendments. The Banking Supervision Department submitted a report on the financial position of banks and other financial institutions, containing numbers, along with an assessment of the financial and regulatory status of each of the banks operating in the UAE. The board reviewed report of the Assistant Governor for Monetary Policy and Financial Stability. The report showed the overall prudential ratios of the banking system, financial stability, central bank data and liquidity. The report confirmed that banking indicators are positive and that banks are in a good financial position, as they enjoy excellent capital adequacy. The central bank reviewed applications submitted by banks and other financial institutions for extension of their activities and opening new branches.

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