UAE Banks Federation submits final proposal on Large Exposure

WAM ABU DHABI, July 15th, 2013 (WAM) — The UAE Banks Federation has raised the final proposal on Percentage Limits that constitute Large Exposure to the UAE Central Bank, after being adopted by the Special Committee tasked by the CEOs Advisory Council of the UAE Banks Federation during its meeting in May 2013, which consists of NBAD, ADIB, Emirates NBD, DIB and NBF.

Primarily , the proposal recommended the exclusion of marketable bonds/sukuks from the proposal, and to apply a Means and Purpose test in order to determine whether the Large Exposure Regulation applies to an entity, and then to consider five year terms to fully comply with these Regulations.

AbdulAziz Abdullah Al Ghurair, Chairman of UAE Banks Federation, said, “We are fully dedicated to continuous cooperation and consultation with the Central Bank to provide necessary proposals and the best solutions for all current and future banking issues. Assigning a special committee of CEOs on Large Exposure Limits by the UAE Banks Federation was an excellent decision, as well as the role of the Wholesale and Corporate Committee which contributed earlier to form this proposal. Once again, the UAE Banks Federation plays a significant role in promoting cooperation between banks on various issues to best serve the community, the banking sector and the national economy. ” Earlier, the central bank had to postpone the implementation of Large Exposure limits, scheduled to kick off last September, and reconsider at the request of the UAE Banks Federation, in order to allow time for the banks to study, evaluate and refer back to the Central Bank with final proposals as per the documents prepared for that purpose.

WAM/ES/CM

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