UAE steps in to support banks as war pressure builds: What to know
The United Arab Emirates' banks have seen their stocks plummet since the war erupted on Feb. 28.
The United Arab Emirates' central bank (CBUAE) unveiled its most significant financial support package since the COVID-19 pandemic on Tuesday, moving to shore up banks and stabilize the economy as the US-Israel-Iran war rattles the Gulf.
What happened: The CBUAE approved a series of liquidity and regulatory relief measures aimed at ensuring banks can continue lending despite mounting economic disruption, according to a statement following a board meeting chaired by UAE Vice President and Deputy Prime Minister Sheikh Mansour bin Zayed Al Nahyan.
The package allows banks greater access to liquidity — including tapping up to 30% of reserve requirements and accessing term funding in both dirhams and US dollars — while temporarily easing capital and funding rules.
Banks will also be given flexibility to postpone the classification of individual and corporate loans for customers affected by the war, easing pressure on borrowers.
