Risk management: That is the buzzword that the UAE Central Bank is focusing on to roll out new laws to ensure that banks are lending responsibly.
UAE Central Bank
Transforming the UAE regulatory framework that will be consistent and transparent as per international standards, the Central Bank’s new corporate governance regulations come amid falling oil prices and rising levels of debt in the banking sector.
The past few quarters have been tough for banks amid falling prices of oil, which has lost more than 70 percent of its value since mid-2014. The UAE Central Bank’s official, James O’Brien, said that the Bank would be releasing new risk management and corporate governance regulations for banks by the end of the year.
How soon will the new laws be enforced?
The Central Bank has not yet disclosed the timeline for issuing the new regulations but is expected to send prior notice to banks to allow them time to adapt to the laws.
What about non-bank financial institutions?
Reports reveal that the UAE Central Bank has a “significant agenda on the regulatory framework front” for non-banks, with the regulations currently under review.
Is Bitcoin part of the virtual currency ban?
The Central Bank’s recent prohibition on virtual currencies released on 1st January revealed that “all virtual currencies (and any transactions thereof) are prohibited”, prompting questions about the validity of Bitcoin. However, new comments suggest that, at least for now, the UAE Central Bank isn’t taking action on bitcoin or other crypto-currencies, currency exchanges or underlying technology such as block chain and that new regulations will be issued as appropriate.
Keep reading this space for more regulatory updates. With all the risk management in place, the business environment in the UAE is only getting better.
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