Proactive Financial Institution Resilience Package

The Proactive Financial Institution Resilience Package aims to reinforce the stability and resilience of the UAE’s banking sector. It covers 5 key pillars which are: monetary policy measures, liquidity and funding relief, capital buffer relief, credit risk management and additional support.  
Proactive Financial Institution Resilience Package
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Proactive Financial Institution Resilience Package

In March 2026, the Central Bank of the UAE (CBUAE) approved a comprehensive Financial Institution Resilience Package (PDF 500 KB), with the aim to reinforce the stability and resilience of the UAE’s banking sector in light of exceptional global and regional circumstances.

 

The Financial Institution Resilience Package covers 5 key pillars allowing banks to access monetary liquidity and provides additional flexibility to utilise excess liquidity and capital buffers to support the UAE economy. The pillars are:

  1. Monetary policy measures – providing enhanced access to reserve balances up to 30 per cent of the cash reserve requirement and making available term liquidity facilities in both AED and USD
  2. Liquidity and funding relief – providing temporary relief in liquidity and stable funding ratios to provide banks with greater flexibility to support the UAE economy
  3. Capital buffer relief – offering temporary release of the Countercyclical Capital Buffer (CCyB) and Capital Conservation Buffer (CCB) to support the UAE’s economy
  4. Credit risk management – providing flexibility to banks to postpone classification of individual and corporate loans for customers affected by the extraordinary circumstances
  5. Additional support – affirming that banks should continue to provide the required financing services to support their customers and the national economy.

 

The CBUAE oversees record-high foreign exchange reserves of more than AED 1 trillion (USD 270 billion) and a monetary base cover ratio of 119 per cent. It reaffirmed the strong fundamentals of the UAE’s AED 5.4 trillion banking sector. As per a press release in March 2026, the overall stock of liquidity held by the UAE’s banks at the CBUAE, combined with their net eligible assets for conventional CBUAE operations, reached close to AED 920 billion (USD 250 billion), of which banks’ reserve balances exceed AED 400 billion (USD 109 billion).

Updated on:

03 Jul 2026