UAE Banks Federation submits final proposal on Large Exposure
The UAE Banks Federation has raised the final proposal on Percentage Limits that Constitute Large Exposure to the Central Bank, after being adopted by the Special Committee tasked by the CEOs Advisory Council of the UAE Banks Federation during its last meeting in May 2013, and consists of NBAD, ADIB, Emirates NBD, DIB and NBF. The proposal primarily recommended to exclude marketable bonds/sukuks from the proposal, and to apply Means and Purpose test in order to determine whether the Large Exposure Regulation applies to an entity, and to consider five years term to fully comply with these Regulations.
H.E AbdulAziz Abdullah Al Ghurair, Chairman of UAE Banks Federation: "We are fully dedicated for continuous cooperation and consultation with the Central Bank to provide necessary proposals and best solutions to all current and future banking issues. Assigning a special committee of CEOs on Large Exposure Limits, by UAE Banks Federation, was an excellent decision besides the role of the Wholesale & Corporate Committee which contributed earlier to form this proposal, where the special Committee reached the above proposal after evaluation. Once again, the UAE Banks Federation plays a significant role in promoting cooperation between banks in various issues to serve the community, the banking sector and the national economy. "
Earlier, the Central Bank has had to postpone the implementation of large exposure limits, scheduled to kick off in September 2012, and reconsider upon request of UAE Banks Federation, so as to allow time for banks to study, evaluate and refer back to the Central Bank with final proposals as per the questionnaire prepared for that purpose.