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Sat 16 Feb 2008 12:44 PM

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UAE poised to set up single financial regulator

Move to leave central bank sole mandate of setting monetary policy, report says.

The UAE could set up one body to regulate the financial services sector, leaving the central bank the sole mandate of setting monetary policy, Middle East Economic Digest (Meed) reported, citing sources.

The new regulator could take over the central bank's banking sector supervision duties, as well as those of the Securities and Commodities Authority, which regulates domestic markets, and the Dubai Financial Services Authority (DFSA), Meed reported on Friday.

The DFSA regulates the Dubai International Financial Centre (DIFC), which was set up in 2004 offering international standards of accounting and financial reporting.

The changes could happen after a cabinet reshuffle on February 26, when UAE Central Bank Governor Sultan Nasser Al-Suweidi could be replaced, Meed said.

"The central bank has a dual role of setting monetary policy and regulating the banking sector. With the appointment of a new governor, sources say the two roles will be separated," it said. (Reuters)

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