UAE banking survives EU, global crises

The UAE banking industry survived the global economic crisis during the last five years and showed growth in almost all indicators, a report said. UAE banks witnessed remarkable growth in total assets which increased by approximately eight per cent to Dh1.791 trillion in 2012, enabling the banking sector to remain the Arab region's largest in terms of assets. The deposits increased from Dh1,069.7 billion in 2011 to Dh1,167.8 billion in 2012 combined with increase in capital and reserves from Dh258 billion in 2011 up to Dh276 billion by end of 2012, according to the annual report issued by the UAE Banks Federation, which was approved at the meeting of its board of directors. The board meeting chaired by Abdul Aziz Abdulla Al Ghurair, chairman of UAE Banks Federation and discussed the federation's business plan for 2013 in addition to the major activities, topics and issues the federation handled since the last meeting. The report highlighted key economic and banking developments, which showed a good performance and growth in almost all indicators, as reflected in banks achieving comfortable liquidity level, a strong capital base and a high capital adequacy ratio. The report praised the success of the UAE banking sector in surviving the global economic crisis during the last five years starting from the mortgage crisis followed by the global financial crisis and finally the Eurozone debt crisis. The board approved the report and the minutes of the previous meeting held on November 8, 2012. It also reviewed topics on the agenda, starting by approving all the financial statements, auditors' report for 2012, estimated budget and auditors' nomination for 2013. The meeting approved the UAE Banks Federation Annual Report of 2012 which shows the major achievements and the significant role the federation has played on different subjects such as mortgage loans cap; liquidity regulation at banks; monitoring of large exposure limits; establishment of the Al Etihad Credit Bureau, the initiative of proposing rules for appointment of legal banking experts and setting up specialised commercial courts. The board reviewed the federation business plan for 2013, which aims to boost cooperation with the central bank, ministries and other government entities on all issues related to the banking sector. In addition it also seeks to promote Emiratisation in the banking sector and develop cooperation and harmony among the member banks. Source: Khaleej Times