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
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
EBA published the quarterly risk dashboard, along with the results of the Risk Assessment Questionnaire survey among 60 banks and 15 market analysts.
ECB concluded the public consultation on the introduction of a digital euro in EU.
ECB published a guide that sets out the supervisory approach to consolidation in the banking sector.
The SRB Chair Elke König published an article setting out work priorities for 2021.
FDIC has selected 11 technology companies—including BearingPoint, Fed Reporter, Inc, and S&P Global Market Intelligence, LLC—for inclusion in the third and final phase of the rapid prototyping competition.