Central Bank of UAE reviews Targeted Economic Support Scheme

The Board of Directors of the Central Bank of the UAE held its regular meeting today at Qasr Al Watan, chaired by H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs.

During the meeting, the board approved the bank’s investment policy, which covers technical specifications, strategic asset distribution standards, and the bank’s maximum risk budget while stipulating that the Risk Management and Compliance Department will draft organisational arrangements to monitor the new investment policy, and the Department of Finance will organise the appropriate accounting arrangements and custodial measures to facilitate the policy’s implementation. The Reserves Management will also implement the investment policy in terms of full communication with the Monetary and Reserves Committee, MRC, as well as draft an appropriate adoption plan.

The board then reviewed a report on the Targeted Economic Support Scheme, TESS, which aims to reduce the effects of the coronavirus, COVID-19, pandemic, by easing burdens related to financing and liquidity, reinforcing lending capacities, and addressing operational challenges.

According to latest statistics, the loan deferment scheme has benefitted over 310,000 clients of personal banking services, as well as some 10,000 small and medium-sized enterprises, SME, and over 1,500 private sector companies.

The board recommended the reassessment of related developments in March and April 2021 and discussed the need to expand TESS as required.

The meeting also covered the gradual implementation of the Basel Standards over three phases, with the first planned for the second quarter of 2021, the second in the fourth quarter of 2021, the third in the second quarter of 2022.

The participants of the meeting were briefed by the bank’s governor about the road map for the next fifty years, which will focus on strengthening monetary and financial stability through efficient monitoring, the effective management of reserves and the creation of a solid infrastructure in line with the best global practices and standards, in addition to achieving the bank’s goal of becoming a pioneer in innovation and supporting the UAE’s digital transformation.

At the end of the meeting, Sheikh Mansour thanked the board’s members for their efforts and urged them to continue the hard work to achieve their desired goals, in line with the aspirations of the country’s leadership.