New risk management, governance rules for UAE banks by year-end

The UAE plans to release new risk management and corporate governance rules for banks by the end of this year, a senior central bank official said on Wednesday, as a looming economic slowdown threatens to pressure credit quality.

"We are changing the UAE regulatory framework that will be consistent and transparent as per international standards," James O'Brien, head of regulatory development at the central bank, 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.

O'Brien did not give details of the reforms, but said regulations governing non-bank financial companies were also under review.

Banks were hit hard by the UAE's financial crisis of 2009, as credit problems spread from small firms to large government-linked companies. Growth in the UAE's private sector is now slowing once again as low oil prices dampen the region, which could lead to a fresh rise in non-performing loans.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Saudi Arabia, other issuers gear up as Gulf bond crush looms

Saudi Arabia, other issuers gear up as Gulf bond crush looms

Cash-strapped region gears up for one of its heaviest-ever periods...

Saudi central bank fights to curb money rate rise

Saudi central bank fights to curb money rate rise

Commercial bankers say more radical steps may be needed to fight...

Are the troubles easing for Saudi construction giant Binladin?

Are the troubles easing for Saudi construction giant Binladin?

Gulf kingdom's biggest builder appears to have pulled back from...

Most Discussed
sponsoredTracking