Central Bank Governor Convenes Banking Leaders to Review Sector Strength and Financial Resilience
Khaled Mohamed Balama, Governor of the Central Bank of the United Arab Emirates, met with the chief executive officers of UAE banks to discuss robust financial indicators and the success of measures supporting economic stability.
Khaled Mohamed Balama, Governor of the Central Bank of the United Arab Emirates (CBUAE), brought together the chief executive officers of banks operating across the UAE for a strategic meeting that underscored the sector’s continued financial soundness and resilience.
The gathering, held in the presence of assistant governors and senior officials, reaffirmed the CBUAE’s commitment to deepening its partnership with the banking sector whilst safeguarding financial stability and monitoring the UAE’s broader financial system.
Financial indicators as at the end of August 2026 painted a picture of sustained strength. Banking assets expanded by 12.9% year-on-year compared with the corresponding period in 2025, whilst total bank loans surged by 18.8%, demonstrating the sector’s vital role in supporting economic and commercial endeavours. Bank deposits increased by 13.0%, reflecting enduring confidence in the UAE’s financial infrastructure.
Asset quality metrics continued their positive trajectory. The non-performing loans ratio declined to 2.6%, with the net NPL ratio improving to 1.2%—developments that highlight the effectiveness of sector risk management and the strength of the CBUAE’s supervisory frameworks, which align with international best practices.
The meeting examined progress under the Financial Institutions Resilience Package (FIRP), launched by the CBUAE in March 2026 to bolster business growth and strengthen economic resilience. The initiative has delivered tangible support: payment deferrals and fee waivers on loans totalling AED 15.9 billion through August 2026 benefitted 155,971 banking customers across individuals, small and medium-sized enterprises, and larger corporations.
Approximately 849 private sector companies received support amounting to AED 10.7 billion, whilst 6,441 SMEs benefitted from loan repayment deferrals of AED 2.9 billion. The package safeguarded the financial wellbeing of approximately 148,681 individuals through loan deferrals totalling AED 2.3 billion, easing financial pressures and enabling customers to maintain their obligations.
Governor Balama emphasised the importance of continued innovation and digital transformation, whilst maintaining enhanced consumer protection, financial inclusion, and the highest standards of governance and compliance. These efforts, he noted, support the UAE banking sector’s regional and international leadership and its contribution to sustainable economic development, positioning the nation as a leading global financial centre.
Source: WAM