UAE declines to inject more liquidity in banking sector

UAE-Banking-SectorThe United Arab Emirates, putting rest on speculations, has ruled out any possibility of government injecting more liquidity in to the banks. The central bank Governor has made it clear that banks should not look for short term measures, given to their comparatively strong financial health.

The Governor, Sultan Bin Nasser al-Suwaidi, while inaugurating a branch of Deutsche Bank in Abu Dhabi, said that the funds were provided to the lenders despite global financial crisis, which pushed their loans and advances by 2.5 per cent in 2009.

The Central Bank Governor added, "There is no need for more liquidity injections for the time being. The central bank is behind U. A. E. banks and branches of international banks in the country through the provision of financial facilities when needed."

Banks in UAE had a tough time in the past due to the combined effect of global financial crisis and Dubai World's crisis. However, the central bank on its part did enough to pump liquidity in the financial system, making them bear tough hours of financial crisis bravely.