The UAE Central Bank will roll out new regulations to make sure that banks are not taking the kind of risks that led to the financial crash in 2009, Reuters reported, citing the bank’s head of regulatory development.
The Central Bank has been putting in place more rules and regulations to keep the risks borrowers and lenders make at levels that will not lead to another meltdown.
These plans come amid an economic slowdown in the UAE and rising levels of debt gone sour at banks.
James O’Brien, the Central Bank official, said that the bank would be releasing new risk management and corporate governance rules for banks by the end of the year.
“We are changing the UAE regulatory framework that will be consistent and transparent as per international standards,” Mr O’Brien told a conference of regional regulators.
“There will be a clear emphasis on board and management responsibility and accountability,” he said, adding that financial institutions would have prior notice and time to implement the new regulations.
Mr O’Brien did not give details of the reforms, but said regulations governing non-bank financial companies were also under review.
Having recovered from the financial crisis in recent years, the past few quarters for banks have been tough amid a crash in the price of oil, which has lost more than 70 per cent of its value since the summer of 2014.
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