CBUAE issues new regulation for specialised banks

SourceGulf Today
SectorFinancial Services

Picture used for illustrative purpose. The Central Bank of the UAE (CBUAE) has issued a new regulation covering licensing, prudential and conduct requirements for specialised banks. Specialised banks are licensed under the CBUAE’s new regulation and are allowed to practice different financial activities to serve the local community, such as account opening, card issuance, and retail and wholesale lending.

Specialised banks are permitted to provide services to UAE nationals and UAE residents only. The objective of the new regulation is to provide a regulatory framework in which specialised banks can operate in the UAE financial sector in a robust and prudent manner. Specialised banks are allowed to conduct their activities in the UAE Dirhams only and operate according to a low credit risk model. They can be established either as a conventional specialised bank without Islamic windows, or as an Islamic specialised bank. The regulation sets a minimum paid-up capital requirement of Dhs300 million that specialised banks must maintain...read more...