Global crisis not going to hurt local banking: UAE central bank

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Central Bank of the UAE Governor chairs the meeting of its board members. Photo - WAM

The UAE central bank announced the country’s banks won’t be adversely impacted by the turmoil roiling international markets.

“The Board reviewed report of the Assistant Governor for Monetary Policy and Financial Stability Affairs, which showed that banks are in a good position and should not be negatively impacted by the recent turmoil in international markets,” the apex bank said in a statement.

Global financial markets are going through turbulent times since the beginning of May amid fears of a possible sovereign debt default by Greece and its exit from the eurozone. Many financial analysts believe the exit of Greece would spell a blow to the sovereign debts and bank deposits of other heavily indebted eurozone countries such as Portugal, Ireland, Spain and Italy.

Market sentiment is at its lowest due to Europe-wide recession, disappointing state of the US economy and slow down of the Chinese manufacturing industry. Some economists are insisting on the possibility of yet another global recession amid large scale unemployment and high oil prices.

The Central Bank Board reviewed a report submitted by the Assistant Governor for Banking Supervision regarding the banking indicators and latest developments in the execution of the Falcon Project (restructuring of the Central Bank).

The report compiled by the Assistant Governor for Monetary Policy and Financial Stability Affairs, showed that banks are in a good position and should not be negatively impacted by the recent turmoil in international markets.

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