The Central Bank of the UAE’s Board reviewed the resilience of the UAE financial system and approved a comprehensive Financial Institution Resilience Package aimed at reinforcing banking sector stability under exceptional global and regional market circumstances. The central bank highlighted foreign exchange reserves of more than AED 1 trillion (USD 270 billion) and a monetary base cover ratio of 119%, and reaffirmed the fundamentals of the UAE’s AED 5.4 trillion banking sector. System liquidity held by banks at the central bank plus net eligible assets for conventional operations was reported at close to AED 920 billion (USD 250 billion), including reserve balances exceeding AED 400 billion (USD 109 billion). The package’s five pillars include enhanced access to reserve balances up to 30% of the cash reserve requirement and term liquidity facilities in AED and USD, temporary relief in liquidity and stable funding ratios, temporary release of the Countercyclical Capital Buffer and Capital Conservation Buffer, flexibility to postpone loan classification for affected customers, and an expectation that banks continue providing financing services to support customers and the national economy. The Board indicated it remains ready to deploy necessary policy tools to safeguard financial system stability.
Central Bank of the UAE 2026-03-17
Central Bank of the UAE approves five-pillar resilience package backed by over AED 1 trillion in reserves to expand liquidity access and release capital buffers
The Central Bank of the UAE approved a Financial Institution Resilience Package to bolster banking sector stability amid challenging market conditions. The package includes enhanced access to reserve balances, temporary relief in liquidity and capital buffers, and flexibility in loan classification. The central bank emphasized its readiness to use policy tools to maintain financial system stability.