*UAE banks will not be exposed to credit risks* *By Babu Das Augustine, Banking Editor** **Published: October 12, 2008, 13:32 Gulfnews***
*Dubai: The UAE economy and its banking sector got the ultimate confidence boost on Sunday as it received the highest reassurance from President His Highness Shaikh Khalifa Bin Zayed Al Nahyan. * *"The UAE economy and banking system are strong and sound," Shaikh Khalifa said after a briefing on the latest developments on the global financial crisis by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.* *During a meeting chaired by Shaikh Mohammad, the Cabinet approved a set of preventive steps and measures to serve the national interest and protect the national economy, UAE's official news agency WAM reported on Sunday.* *One of the measures is that the federal government will ensure that no UAE national bank is exposed to credit risks. It will guarantee deposits and savings in all national banks and all lending operations between banks operating in the UAE. It will also pump sufficient liquidity into the financial system if and when necessary. * *"We are determined to protect our financial and banking system to preserve the interests of our country and people," Shaikh Mohammad said.* *Sunday's statements by UAE leaders constitute the first assurance at the highest level yet in the Gulf region. * *Amid growing rumours that some local banks were facing liquidity problems the UAE Central Bank in recent weeks has repeatedly said the financial industry is safe from the global turmoil. * *As a precautionary measure, last month the Central Bank pumped Dh50 billion into the interbank market.* *Although the government made its unconditional support to the local banking and financial services sector clear, the market continued to react negatively. Abu Dhabi's main index was down 3.1 per cent and the Dubai index was down 4.87 per cent on Sunday. * *Business leaders, bank CEOs and financial analysts said yesterday that the government support is a very positive development for the economy and financial markets. * *"The statement of His Highness Shaikh Khalifa Bin Zayed Al Nahyan, President of the UAE and Ruler of Abu Dhabi reflects the commitment of the country's leadership to protect the national economy. These brave measures indicate the UAE leadership's deep confidence in the strong fundamentals of the country's banking and fin-ancial system and the whole economy," Dr Omar Bin Sulaiman, Governor of the Dubai International Financial Centre (DIFC) and Vice Chairman of the UAE Central Bank, said.* *"This is great news for the UAE economy and the banking sector. The UAE's wise leadership has always made sure that the country and its people are protected from all kinds of risks. In times of crises such as wars and economic turmoil in the past, the UAE government always rose to the occasion to reassure its residents," Ahmad Humaid Al Tayer, Chairman of Emirates NBD, said.* *Industry leaders from the financial services sector said that the government's unequivocal stand will restore the public's confidence in the country's fin-ancial system and the impact will be soon reflected in the market sentiment in the coming days and weeks.* *"The time of fear is over and common sense should prevail. A decision of this magnitude is a reflection of the government's trust in the banking industry in the UAE," Abdul Aziz Al Ghurair, chief executive officer of Mashreq, said.* ** *M.Akber 0501505086 * --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Investors Club Dubai" group. To post to this group, send email to investors-club-dubai@googlegroups.com To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/investors-club-dubai?hl=en -~----------~----~----~----~------~----~------~--~---
