Over 310,000 retail customers, 11,500-plus businesses availed TESS benefits

Central Bank of UAE commits further support to banks

ABU DHABI/November 26-2020: More than 310,000 retail customers, nearly 10,000 small and medium-sized enterprises and more than 1,500 private sector corporates have availed the TESS loan deferral progamme to date, according to a Central Bank statement.

The Targeted Economic Support Scheme (TESS) introduced March, 2020, includes AED50 billion of zero-interest, collateralised loans for UAE-based banks. It also entails AED50 billion funds freed up from banks’ capital buffers

CBUAE commits support

Addressing the bank CEOs, who updated and discussed with the Central Bank, the status of the macro-economic environment and the banking Industry in the UAE, the governor of the Central Bank of UAE (CBUAE), Abdulhamid M Saeed Alahmadi (seen in the picture), offered full support to help banks and stimulate the economy.

“The CBUAE continues to listen to the needs of the market and shall continue to provide a supporting role to help banks and stimulate the economy,” the Governor said.

The Governor commenced the meeting by recognising and thanking all CEOs and their staff, for all the efforts put in by them during the Covid-19 pandemic to ensure the smooth functioning of all banking channels and the continued service to the customers.

Banks stable

The Central Bank said that most indicators in the banking industry including liquidity, capital adequacy are stable, and there has been a pickup in various growth indicators as at the third quarter of the year.

The Governor said the banks need to continue with caution on various parameters and ensure robustness of their balance sheets with sufficient capital, liquidity and provisioning levels.

He also stressed that the safety and soundness of the banking system is of utmost importance to the CBUAE and that it remains the continuing priority.

Various initiatives in offing

As part of the Central Bank’s efforts to combat money laundering and financing of terrorism, the results of the first round of CBUAE Sanction’s screening systems of 31 financial institutions were reviewed and an industry-wide paper on lessons learned will be published soon. The Governor said, “We are transforming the CBUAE with various initiatives and programs. We are challenging the status quo, incorporating the best technology and building relationships with other central banks and governments across the globe.”

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