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Adopt standards for maturity dates of each item of the budget
The introduction of new liquidity to the banks within two months
Source:
• Abu Dhabi - Fattah victor
Date: February 26, 2012
Banking sources expect the adoption of the application and the start of the new system to determine the liquidity requirements of banks operating in the country during the next two months. According to the sources, the Central Bank specialists have achieved a large proportion of the amendments to the draft of the new system liquidity at banks operating in the country by the Board of Directors of the Central Bank made after discussing the proposal on the new system.
The sources pointed out that it is expected to adopt the new system on the new standards regarding maturity dates of each item of the budget on both sides of the assets and liabilities, rather than the system disk is currently applied, which depends on that the proportions of loans to deposits ratio 1:1, indicating that the new system includes standards New to measure the levels of liquidity of banks operating in the country to cope with the local variables and the new regional and international. Where the central bank has issued a circular to all banks and finance companies operating in the country to collect the data necessary to study the quantitative impact on the introduction of changes to the standards currently applied by the Central Bank to measure the levels of liquidity in the banks operating in the country.
Consultation with banks and companies
The sources said that the Central Bank specialists have prepared a draft before the new system in consultation with the heads of departments working in banks treasury and finance companies operating in the country. Then asked to provide information and detailed data about each items of assets and liabilities and other financial data included bank balance budgets so that the Central Bank of careful study to set new standards to measure the levels of liquidity to banks.
According to the data that he has requested the Central Bank of the banks it on each bank to determine the maturity or maturities of each item of financial items and classified for maturity dates of less than seven days or between 8 days and less than a month or a month to 3 months or more from 3 months up to 6 months or more than 6 months to a year or more than a year, where each bank should be divided all items of assets and liabilities such as slides and due dates.
He explained that the central purpose of this data complete the evaluation of the impact of the proposed changes and provide data so that it can be compared to the proposed standards with the standards currently in force. He pointed out that the data must include detailed information on assets and liabilities in dirhams or U.S. dollar or other currencies.
Better risk management techniques
The sources confirmed that the central bank seeks to establish a number of new regulations in the banking sector in order to help banks to apply the best practices for risk management and protection of the UAE banking system of any financial crises may occur in the future. Noting that the government measures to support the banking system has improved the liquidity situation in the banks.
She noted that the Central Bank to discuss with banks operating in the country continuously develop these new regulations to consider the type of securities that may be included in the category of liquid assets in times of crisis and the appropriate percentages of these securities. He pointed out that the UAE banks will not face any problems if you had enough tools and first-class securities between liquid assets.
"Inter Bank" and instruments
The sources added that the issues being discussed in this area as well as matters relating to inter-bank deposits "Inter Bank" and similar instruments issued by the UAE banks in international capital markets. She said, must be considered in the proportion of opponents of these instruments and their suitability primarily for liquid securities issued by our banks.
She pointed out that he must also study the companies or the banks' assets under which possession or sold to bank customers and make sure the customers understand the risks of these companies or their assets and explained adequately by the banks. Pointing out that he must also study and monitor the development of a portfolio of loans and advances in the economic sector and the percentage of cross-border loans, has been proven that these indicators are important too.
The proportion of stable funding
And His Excellency Sultan Bin Nasser Al Suwaidi, has declared that the central bank is taking new steps to boost liquidity as of 2012, explaining that the funding ratio is good and stable net deposits by major clients is stable and constantly growing, accounting for 90% of the banking system. He stressed that the banks taking into account the credit risk management based on the revenues and the interest rate on loans, and on the banks of the stress tests in difficult times to get to know the risks.
He stressed that the central bank looks at the financial position of strength to the banks and their ability to meet the requirements of allotments and avoid having its provisions be sound regardless of what achieved by the banks of the profits that may be volatile increases and decreases depending on market conditions.
The Minister pointed out that the reform package supervisory issued by the Basel address weaknesses in the banking sector before the financial crisis and the outline of the set of actions that aim to increase the resistance of the banks and the global banking system crises, covering new global standard called Basel III-related risks in banks as well as those risks related to the banking system as a whole.
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The introduction of new liquidity to the banks within two months
Source:
• Abu Dhabi - Fattah victor
Date: February 26, 2012
Banking sources expect the adoption of the application and the start of the new system to determine the liquidity requirements of banks operating in the country during the next two months. According to the sources, the Central Bank specialists have achieved a large proportion of the amendments to the draft of the new system liquidity at banks operating in the country by the Board of Directors of the Central Bank made after discussing the proposal on the new system.
The sources pointed out that it is expected to adopt the new system on the new standards regarding maturity dates of each item of the budget on both sides of the assets and liabilities, rather than the system disk is currently applied, which depends on that the proportions of loans to deposits ratio 1:1, indicating that the new system includes standards New to measure the levels of liquidity of banks operating in the country to cope with the local variables and the new regional and international. Where the central bank has issued a circular to all banks and finance companies operating in the country to collect the data necessary to study the quantitative impact on the introduction of changes to the standards currently applied by the Central Bank to measure the levels of liquidity in the banks operating in the country.
Consultation with banks and companies
The sources said that the Central Bank specialists have prepared a draft before the new system in consultation with the heads of departments working in banks treasury and finance companies operating in the country. Then asked to provide information and detailed data about each items of assets and liabilities and other financial data included bank balance budgets so that the Central Bank of careful study to set new standards to measure the levels of liquidity to banks.
According to the data that he has requested the Central Bank of the banks it on each bank to determine the maturity or maturities of each item of financial items and classified for maturity dates of less than seven days or between 8 days and less than a month or a month to 3 months or more from 3 months up to 6 months or more than 6 months to a year or more than a year, where each bank should be divided all items of assets and liabilities such as slides and due dates.
He explained that the central purpose of this data complete the evaluation of the impact of the proposed changes and provide data so that it can be compared to the proposed standards with the standards currently in force. He pointed out that the data must include detailed information on assets and liabilities in dirhams or U.S. dollar or other currencies.
Better risk management techniques
The sources confirmed that the central bank seeks to establish a number of new regulations in the banking sector in order to help banks to apply the best practices for risk management and protection of the UAE banking system of any financial crises may occur in the future. Noting that the government measures to support the banking system has improved the liquidity situation in the banks.
She noted that the Central Bank to discuss with banks operating in the country continuously develop these new regulations to consider the type of securities that may be included in the category of liquid assets in times of crisis and the appropriate percentages of these securities. He pointed out that the UAE banks will not face any problems if you had enough tools and first-class securities between liquid assets.
"Inter Bank" and instruments
The sources added that the issues being discussed in this area as well as matters relating to inter-bank deposits "Inter Bank" and similar instruments issued by the UAE banks in international capital markets. She said, must be considered in the proportion of opponents of these instruments and their suitability primarily for liquid securities issued by our banks.
She pointed out that he must also study the companies or the banks' assets under which possession or sold to bank customers and make sure the customers understand the risks of these companies or their assets and explained adequately by the banks. Pointing out that he must also study and monitor the development of a portfolio of loans and advances in the economic sector and the percentage of cross-border loans, has been proven that these indicators are important too.
The proportion of stable funding
And His Excellency Sultan Bin Nasser Al Suwaidi, has declared that the central bank is taking new steps to boost liquidity as of 2012, explaining that the funding ratio is good and stable net deposits by major clients is stable and constantly growing, accounting for 90% of the banking system. He stressed that the banks taking into account the credit risk management based on the revenues and the interest rate on loans, and on the banks of the stress tests in difficult times to get to know the risks.
He stressed that the central bank looks at the financial position of strength to the banks and their ability to meet the requirements of allotments and avoid having its provisions be sound regardless of what achieved by the banks of the profits that may be volatile increases and decreases depending on market conditions.
The Minister pointed out that the reform package supervisory issued by the Basel address weaknesses in the banking sector before the financial crisis and the outline of the set of actions that aim to increase the resistance of the banks and the global banking system crises, covering new global standard called Basel III-related risks in banks as well as those risks related to the banking system as a whole.
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