CBUAE is consulting on the enhanced regulatory framework for real estate exposures of banks. The refined measures are expected to improve flexibility for bank lending to the real estate sector, while ensuring that banks with real estate exposures above a set threshold will be subject to supplemental regulatory requirements. In addition, through the application of a backstop, the proposed measures avoid excessive real estate exposures and encourage banks to maintain diversified assets. CBUAE is inviting banks to provide comments on the proposed framework through the UAE Banking Federation by October 31, 2019.
The proposed framework was prepared in line with the ongoing regulatory developments at the Central Bank and in conjunction with a comprehensive assessment and third-party validation by international experts. The primary objective of the proposed framework is to enhance financial stability by re-designing regulatory measures aimed at exposures of banks to the real estate sector. The Central Bank will complement the proposed framework by its risk-based supervision to ensure continued consistent application of the regulatory measures and appropriate risk management standards across the banking industry.
Related Link: Enhanced Regulatory Framework (PDF)
Keywords: Middle East and Africa, UAE, Banking, Credit Risk, Real Estate Exposures, UAE Banking Federation, CBUAE
APRA issued a letter on the loss-absorbing capacity (LAC) requirements for domestic systemically important banks (D-SIBs) and published a discussion paper, along with the proposed the prudential standards on financial contingency planning (CPS 190) and resolution planning (CPS 900).
The European Commission (EC) launched a call for evidence, until March 18, 2022, as part of a comprehensive review of the macro-prudential rules for the banking sector under the Capital Requirements Regulation (CRR) and Directive (CRD IV).
The Financial Stability Board (FSB) published a report that sets out good practices for crisis management groups.
The Australian Prudential Regulation Authority (APRA) found that Heritage Bank Limited had incorrectly reported capital because of weaknesses in operational risk and compliance frameworks, although the bank did not breach minimum prudential capital ratios at any point and remains well-capitalized.
The Office of the Superintendent of Financial Institutions (OSFI) released the annual report for 2020-2021.
Through a letter addressed to the banking sector entities, the Office of the Superintendent of Financial Institutions (OSFI) announced deferral of the domestic implementation of the final Basel III reforms from the first to the second quarter of 2023.
EIOPA recently published a letter in which EC is informing the European Parliament and Council that it could not adopt the set of draft regulatory technical standards for disclosures under the Sustainable Finance Disclosure Regulation (SFDR) within the stipulated three-month period, given their length and technical detail.
The Financial Conduct Authority (FCA) published the third in a series of policy statements that set out rules to introduce the UK Investment Firm Prudential Regime (IFPR), which will take effect on January 01, 2022.
The Australian Prudential Regulation Authority (APRA) published, along with a summary of its response to the consultation feedback, an information paper that summarizes the finalized capital framework that is in line with the internationally agreed Basel III requirements for banks.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) issued a consultative report focusing on access to central counterparty (CCP) clearing and client-position portability.