Sunday, May 23, 2010
Central Bank to haul in bank chiefs to review strategies on new global scenario.
The Central Bank of the UAE has called for a consultative meeting of chief executives of all banks in the country tomorrow to seek their views and review business strategies to be followed in the new global scenario.
Letters have been sent to all banks informing about the meeting. The Central Bank has stated that it will convene such meetings once in each quarter from now. Though such meetings have not been a regular affair, the past more than a year has seen a few meetings with banks being organised on key issues.
In July last year, the Central Bank had called for a meeting of all banks with exposure to the troubled Saudi corporate groups – Saad and Algosaibi. Moreover, the Central Bank convenes regular meetings of risk management officials of the banks as part of the implementation of Basel 2 and to assess risk mitigation steps being followed by the banks.
According to the chief executive of a foreign bank, Monday's meeting gains significance given the fact that this is the first time the banks are getting an opportunity to have a discussion with the Central Bank in the aftermath of Dubai World's debt restructuring offer to the creditor banks.
"We are eager to hear from the Central Bank what it has to say on the DW offer made to the banks, especially on provisions with regards to the exposure to DW," he told Emirates Business.
The banks are also nearing the deadline for achieving the 12 per cent capital adequacy ratio.
Letters have been sent to all banks informing about the meeting. The Central Bank has stated that it will convene such meetings once in each quarter from now. Though such meetings have not been a regular affair, the past more than a year has seen a few meetings with banks being organised on key issues.
In July last year, the Central Bank had called for a meeting of all banks with exposure to the troubled Saudi corporate groups – Saad and Algosaibi. Moreover, the Central Bank convenes regular meetings of risk management officials of the banks as part of the implementation of Basel 2 and to assess risk mitigation steps being followed by the banks.
According to the chief executive of a foreign bank, Monday's meeting gains significance given the fact that this is the first time the banks are getting an opportunity to have a discussion with the Central Bank in the aftermath of Dubai World's debt restructuring offer to the creditor banks.
"We are eager to hear from the Central Bank what it has to say on the DW offer made to the banks, especially on provisions with regards to the exposure to DW," he told Emirates Business.
The banks are also nearing the deadline for achieving the 12 per cent capital adequacy ratio.
