The central bank is launching a platform for instant payments in 2023

v + T – normal size

His Excellency Khaled Mohammed Belama, Governor of the UAE Central Bank, presided over a meeting with CEOs of the banking sector and representatives of a group of banking and money transfer institutions in the country. During the meeting, the desired goals were discussed within the digital transformation plan in the financial sector, as the bank is gradually implementing a new platform for instant payments. Planned to launch in the first quarter of 2023 with the participation of an initial group of financial institutions, the platform will enable instant payments and money transfers in the UAE 24 hours a day. The new platform will provide the next generation of payment services to financial institutions and consumers in the UAE. The central bank emphasized the importance of ensuring that qualified financial institutions and payment service providers are ready to accept the instant payment platform in accordance with the approved action plan.

regulatory framework

The central bank also discussed with bank officials the regulatory framework in the financial sector and the progress they have made in the Emiratization program, as the percentage of Emirati nationals working in banks rose to 32% in the third quarter of 2022, and the percentage of Emiratization is projected to in the banking sector to reach 45% by the end of 2026.

ATM

The central bank highlighted the important role that money exchanges play in the UAE financial system and wanted to emphasize the importance of developing mutual cooperation between money exchanges and the banking sector, in order to increase support for financial consumers and promote digital transformation and progress in national payment systems.

Khaled Balama said: The Bank has embarked on the implementation of targeted initiatives in the area of ​​transformation of financial infrastructure and national payment systems in close cooperation with leaders of the financial sector. We also encourage the sector to implement innovative features and pass on the benefits to financial consumers.

liquid assets

On the other hand, the bank’s statistics showed an increase in the value of liquid assets in the banking sector to 509.61 billion dirhams by the end of September, which is an annual increase of 5%, or the equivalent of 24.4 billion dirhams, compared to 485, 2 billion dirhams at the end of the third quarter of 2021.

In the report on the basic indicators of financial security for the third quarter of 2022, the bank stated that the value of liquid assets in the banking sector amounted to 14.6% of the total assets of the banking sector, in the amount of 3.5 trillion dirhams, at the end of September.

Good capital

The report confirmed that the UAE banking system is well capitalized, as the total capital adequacy ratio reached 17.5% at the end of the third quarter, as the capital adequacy ratio is still much higher than the minimum capital adequacy ratio of 13%, and includes the capital buffer of 2.5% and a limit of 8.5% Minimum for the first layer of capital, as prescribed by the regulations of the Central Bank based on compliance with the guidelines of the “Basel III” principles, which banks in the country adhere to, as of December 2017.

Capital adequacy rates measure the amount of bank capital expressed as a percentage of risk-weighted assets. A high rate of capital adequacy provides protection to depositors and increases the stability and efficiency of the economy’s financial system. The percentage of Tier 1 capital in the banking sector reached 16.3%, while the share of Tier 1 capital reached 14.5%.

personal loans

Personal loans granted to residents rose to 368.6 billion dirhams at the end of the third quarter, with a quarterly increase of 2% and an annual increase of 7.2%. Personal loans to individuals accounted for 19.7% of the country’s total bank loans, which stood at 1.86 trillion dirhams at the end of the third quarter.

The total assets of banks operating in the country increased on a quarterly basis by 3.9% to reach 3.58 trillion dirhams at the end of the third quarter. Bank credit increased by 0.4% to 1.87 trillion dirhams at the end of September. Deposits of residents and non-residents with banks operating in the country increased on a quarterly level by 4.5%, while on an annual level they increased by 12.6% to 2.186 trillion dirhams, and deposits of residents increased on a quarterly level by 6.2% . % to 1.958 trillion dirhams.

The report states that the total capital and reserves of banks operating in the country increased on a quarterly basis by 3.5% to 413.3 billion dirhams at the end of the third quarter of this year 2022.

Number of banks and branches

The report states that the number of domestic banks remained unchanged and amounted to 23 banks at the end of the third quarter of this year, while the number of branches of these banks decreased to 506 at the end of September last year, and the number of electronic banking services of units belonging to these banks at the end of the third quarter of this year increased to 44. This year, while the number of exchange offices remained unchanged and amounted to 21 at the end of September last year.

The number of GCC banks operating in the country at the end of the third quarter remained constant at 6 banks and one commercial bank, and the number of branches also remained constant at 6 branches. The number of foreign banks remained at the same level as at the end of the last quarter, with 21 banks and 68 branches. The number of units for electronic banking services for these banks increased at the end of the third quarter of this year to 22 units, while the number of exchange offices remained at one office.

The report points out that the number of other financial institutions that are subject to licensing and supervision by the Central Bank, including commercial banks, representative offices, financial companies, exchange offices, brokerage offices in currency trading and intermediation in money market operations, amounted to 10 at the end of the third quarter of this year , 73, 18, 86 and 3. While the ATMs of banks operating in the country at the end of September last year numbered around 4376 machines.

Technological development

Technological and structural developments in the financial sector have increased the availability of mobile banking applications, online banking services and the ease of use of ATMs over the past few years, and these improvements continue to deliver results in improving the smoothness of the banking system.

Follow the economic statement via Google News