The board of the Central Bank of the UAE chaired by His Highness Sheikh Mansour bin Zayed Al Nahyan reviewed the strength of the country’s financial system on March 17 2026 and approved a proactive resilience package for banks. The package draws on the central bank’s foreign exchange reserves which exceed Dh1 trillion and a monetary base cover ratio of 119 percent. According to the board the UAE banking sector which stands at Dh5.4 trillion in assets has shown no material impact from current global and regional challenges with liquidity holdings reaching close to Dh920 billion. The announcement from the Central Bank of the UAE highlighted that bank reserve balances alone surpass Dh400 billion providing a substantial buffer for operations.
Building on prior precautionary policies the board directed the implementation of five pillars under the Financial Institution Resilience Package to maintain stability and support the national economy. The first pillar enhances monetary policy through greater access to reserve balances up to 30 percent of cash requirements and term liquidity facilities in both dirham and dollar denominations. A second pillar offers temporary relief on liquidity coverage and stable funding ratios while the third releases countercyclical and conservation capital buffers on a temporary basis. The Central Bank of the UAE stated that these steps allow banks greater flexibility without compromising core prudential standards.
Under the fourth pillar banks gain leeway to defer loan classifications for clients impacted by extraordinary circumstances as part of credit risk management adjustments. The fifth pillar underscores the expectation that financial institutions will continue extending financing to customers and priority economic sectors. In an announcement on its findings the board reiterated readiness to deploy additional policy tools if needed to protect the financial system. A recent International Monetary Fund assessment found that UAE banks maintain capital adequacy ratios well above minimum requirements which has contributed to their sustained performance through previous volatility periods.
Attendance at the board meeting included vice chairmen Abdulrahman Saleh Al Saleh and Jassem Mohamed Bu Ataba Al Zaabi as well as governor Khaled Mohamed Balama. Other participants comprised board members Younis Haji Al Khoori Sami Dhaen Al Qamzi and Ali Mohamed Al Rumaithi along with assistant governors Ahmed Saeed Al Qamzi and Ibrahim Al Sayed Mohamed Al Hashemi. The Central Bank of the UAE data places the overall stock of bank liquidity and eligible assets at levels that underscore the sector’s preparedness according to the meeting summary.
Sheikh Mansour bin Zayed Al Nahyan emphasised the foundations of the UAE’s economic position in remarks carried by the announcement. He affirmed “The UAE’s enduring financial and economic strength is rooted in the forward-looking vision of the UAE’s leadership. The CBUAE’s precautionary policies and proactive frameworks have consistently demonstrated their effectiveness in promoting the resilience and preparedness of the financial and banking sector while ensuring monetary and financial stability. These achievements are a testament to the sustained confidence in our system and the global competitiveness of the UAE’s national economy”. The board noted that such measures align with broader objectives to elevate the financial sector’s role in national development plans.
The UAE banking sector’s capital and reserves reached Dh502.6 billion in the period leading into 2026 according to supplementary Central Bank of the UAE figures referenced in related reporting. This positions institutions to absorb potential shocks while continuing lending activities. The package approval comes as the central bank maintains oversight of payment systems that have operated without disruption despite external conditions. Officials at the meeting stressed the importance of continued vigilance to preserve the competitiveness of the UAE’s financial marketplace on the global stage.
