UAE to adopt new ‘Dirham Monetary Framework’

By Eudore R. Chand

ABU DHABI 4 February 2020: The Central Bank (CBUAE) Board discussed a presentation from the Monetary Management Department on the newly proposed Dirham Monetary Framework (inclusive of the Guidance Manual of the Monetary Bills Programme); and Board directed to implement the new framework as per the timeline approved.

No further details were made available.

The board also reviewed applications submitted by some financial institutions, and granted approvals to applications that met their respective requirements, along with tackling two regulations presented by the Regulatory Development Division of the Banking Supervision Department namely:

  • The Loan Based Crowdfunding Regulation and
  • Major Acquisitions Regulation

The board approved the new Regulations for issuance and publication in the Official Gazette, said Wam.

Moreover, the board reviewed two notes on the Quarterly Financial Surveillance Report and Quarterly Macro-Prudential Policy Stance Report, with focus on the role of Domestic Systemically Important Banks.

The board took note of the reports presented by the Financial Stability Department and directed that the necessary measures be taken in this regard. Also, the board reviewed the External auditor’s report on the Central Bank’s financial statements as at 30th Sept. 2019.

Furthermore, it reviewed a report submitted by the Consumer Protection Department regarding regulations and standards based on consumer protection. The board instructed consultation with the concerned stakeholders.