The UAE Central Bank has announced a new regime for the minimum banking capital, applies to all banks, including branches of foreign banks operating in the UAE, and this system will be implemented next month.
The banks must keep at all times a minimum of paid-up capital. .
> The banks established in the state must retain a fully paid money at least 2 billion dirhams. About 300 million dirhams, according to Article III.
> Branches of foreign banks have to maintain a fully paid capital at least 100 million dirhams at the level of branches and qualified capital at least 2 billion dirhams or equivalent at the level Entity.
The article IV to be the headquarters of the branch has signed pledge to cover any lack of fully paid capital.
As for branches of foreign banks, qualified capital according to the regime intended by the supervisory capital, according to its definition under Basel, as applicable in the country established Bank.
The article fifth addressed the relationship with other capital requirements, stating that there is no mutual relationship between the minimum capital requirements, as knowing This system, and other capital requirements contained in other systems including risk-based capital requirements.
> The central bank may be part of the license process to impose a minimum capital requirements higher than those specified in Article III, and determines the quality of qualified capital to meet these requirements, as Article VI.
