Banking

With assets of Dh2.47trn ($672.3bn) as of December 2015, the UAE banking system is the largest in the region. These assets are deployed within the federation as well as across the GCC, the traditional destinations of Europe and the US, and the world’s emerging markets. While local lenders remained profitable in 2015, the effects of a sustained drop in oil prices were seen in both balance sheets and income statements. The most significant change was the slowdown in deposit growth as a result of the government drawing down reserves to meet its spending commitments. Meanwhile on July 1, 2015 the central bank introduced a liquid assets ratio as a first step towards its ultimate objective of implementing the liquidity standards of Basel III, with approved banks starting the transition to Basel’s liquidity coverage ratio in January 2016. This chapter contains interviews with Mubarak Rashed Al Mansoori, Governor, Central Bank of the UAE; and Andre Sayegh, CEO, FGB.