Complex Made Simple

UAE tightens liquidity rules for lenders

The UAE's central bank has issued new rules for qualitative, quantitative and reporting requirements on liquidity risk management to help lenders better cope with future crises, Reuters has reported. "The aim of this liquidity regulation is to reduce the frequency and severity of banks' liquidity problems," a circular by the central bank said. "This is achieved by ensuring banks have a robust risk liquidity management and governance process and they are holding sufficient liquid assets to withstand a liquidity stress," it said.