UAE Central Bank launches resilience measures amid Iran crisis
The Central Bank of the United Arab Emirates (CBUAE) has unveiled a new package designed to strengthen the resilience of the nation’s banking sector amid ongoing tensions in the Gulf linked to the Iran crisis.
The war, now entering its third week, has disrupted global energy markets and transportation networks, with several incidents affecting Dubai and other Gulf states. Despite these challenges, the UAE’s banking system has shown strong resilience, maintaining stable operations and payment systems.
The approved package provides banks with enhanced access to reserve balances of up to 30% of their cash reserve requirements, as well as access to term liquidity facilities in both UAE dirhams and U.S. dollars. Additional measures include temporary relief on liquidity and stable funding ratios, alongside the temporary release of the countercyclical capital buffer and capital conservation buffer.
CBUAE officials emphasized that these steps aim to safeguard financial stability, support banks during extraordinary circumstances, and ensure continued confidence in the UAE’s economic framework.
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