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ABU DHABI / WAM
His Highness Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, Minister of the Presidential Court and Chairman of the Central Bank of the UAE (CBUAE), has chaired the meeting of the CBUAE Board of Directors, which took place at Qasr Al Watan, Abu Dhabi.
The CBUAE board went over the meeting’s agenda, reviewed the issues brought up by the various CBUAE divisions, and evaluated how well projects and plans were progressing in alignment with national economic and future goals before making the required decisions.
The board deliberated on the financial infrastructure reform programme for the nation’s financial and insurance sectors, as well as the latest developments related to the first phase of the implementation of the CBUAE Central Bank Digital Currency (CBDC) Strategy. They also looked over the latest updates relevant to the domestic payment scheme and assessed the recommended implementation models.
Additionally, the board discussed the impact of interest rate hikes in the country’s financial sector and approved the recommended solutions to limit the impact on individuals paying mortgages.
The meeting covered a series of topics, including plans to develop and implement green financing initiatives; the implementation of sustainability strategies in the financial sectors; active participation in the ‘Year of Sustainability’ initiatives; and supporting efforts related to the UAE’s hosting of the 28th Session of the Conference of the Parties (COP28) to the UN Framework Convention on Climate Change (UNFCCC).
The Board also reviewed the new Emiratisation policies of institutions operating in the banking, financial, and insurance sectors, and made the necessary decision thereof.
The board approved the issuance of systems, legislation and policies aimed at supporting the financial and insurance sectors, including the large exposure guidelines, as per the latest benchmarks issued by the Basel Committee on Banking Supervision.
The meeting saw the approval of the new regulatory framework for the short-term financing service, ‘Buy Now Pay Later’ (BNPL), as well as the policy on processing violations of anti-money laundering procedures, in line with the standards issued by the Financial Action Task Force (FATF).
In order to maintain financial stability, the board evaluated the requests of a number of banks and financial institutions during the meeting and made the required decisions within the constraints and guidelines established by the central bank.
The meeting also reviewed the 2022 report of the Higher Shari’ah Authority, which included the authority’s current and future projects.
At the conclusion of the meeting, Sheikh Mansour commended the CBUAE Board and the bank’s efforts and projects that promote innovation and drive the digital transformation and sustainability, as well as the steps aimed at ensuring monetary and financial stability and integrity.
He also called for continuing these efforts to fulfil the Central Bank’s objectives and vision to expand the financial sector.
The meeting was attended by Deputy Chairmen Abdulrahman Saleh Al Saleh and Jassem Mohammad Al Zaabi; and CBUAE Governor Khaled Mohamed Balama, along with board members Younis Al Khoori, Sami Dhaen Al Qamzi, Ali Mohammed Bakheet Al Rumaithi, Saif Al Dhaheri, Assistant Governor, and Ibrahim Alsayyed Al Hashemi, Secretary-General of the Board.