UAE’s Banks Not To Be Affected By Global Financial Crisis: Central Bank

The UAE’s banks won’t be adversely impacted by the turmoil roiling international markets, the country’s central bank said.

“The Board reviewed report of the Assistant Governor for Monetary Policy and Financial Stability Affairs, which showed that banks are in a good position and should not be negatively impacted by the recent turmoil in international markets,” the apex bank said in a statement.

Global financial markets have seen heavy selling pressure since the beginning of May as fears of a possible sovereign debt default by Greece and its exit from the Euro zone increase. The exit of Greece would most certainly mean a run on the sovereign debts and bank deposits of other heavily indebted countries in the Euro zone such as Portugal, Ireland, Spain and Italy — a possibility the European Central Bank (ECB) or Euro zone policymakers have not been able to conclusively put to rest until now.

Furthermore, the market confidence is bearish due to slowing economies in Europe, the US and China giving rise to the possibility of yet another global recession amid large scale unemployment and high oil prices, Gulf News reported.