The UAE’s Central Bank (CBUAE) has pledged its support for the embattled Sharjah-based Invest Bank with “all available liquidity facilities” as it works to strengthen its capital base, it was announced on Sunday.
In a statement, the CBUAE said it is “closely monitoring Invest Bank’s financial developments” and has been working to develop a plan with the bank and the government of Sharjah.
Last week, the bank said that its board of directors will recommend the injection of Sharjah government capital, which would make it a majority investor in the bank.
“In this regard, the government of Sharjah is firmly committed to support the bank via a direct equity investment and this plan will be presented at the banks AGM (annual general meeting) scheduled for the 29th of December 2018 for approval,” the CBUAE statement said.
“In the meantime, the CBUAE will support Invest Bank with all the available liquidity facilities, which remain at Invest Bank’s disposal; if, and when, needed.”
The Sharjah-based bank – which is 15.5 percent owned by Sharjah-based International Private Group – has been hit by high levels of non-performing loans, in part because of its exposure to the real estate and construction markets.
In October, Invest Bank denied media reports linking it with a potential three-way merger with United Arab Bank and Bank of Sharjah, in which the government of the emirate has a 17.2 percent stake.For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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