Reviving Banks in UAE; 88% of TESS liquidity facility utilized by UAE banks.

UAE’s Apex bank, Central Bank of the UAE (CBUAE) has presented encouraging numbers stating that 88% of the $13.6 billion Targeted Economic Support Scheme (TESS) liquidity facility was utilized by UAE banks. A total of 26 banks availed the support, with 17 banks drawing down 100%.

The announcement was made on the Central Bank of the UAE’s 6th virtual Board of Directors conference on June 16, 2020. The meeting took place under the chairmanship of Hareb Masood Al Darmaki, the Chairman of the Board.

The gathering was attended by Abdulrahman Saleh Al Saleh, Deputy Chairman of the Board, Abdulhamid Saeed, the Governor and Board members Younis Haji Al Khoori, Khaled Mohammed Salem Balama, Khalid Ahmad Al Tayer and Ali Mohammed Al Madawi Al Remeithi, and a group of senior CBUAE employees.

The Board evaluated the utilization of the Targeted Economic Support Scheme (TESS) and noted the improvement in the drawdown of the liquidity facility and the deferrals offered by banks to eligible customers. It was understood that banks operating in the UAE availed 88% of the $13.6 billion liquidity facility, comparable to $12 billion of allocated funds.

More than 140,000 qualified customers have already profited from the TESS liquidity facility. The Board also evaluated the aspects of support presented to customers outside of the TESS liquidity facility.

More than 180,000 customers have benefited from such support, with a total deferral value of approximately $2.2 billion

Besides, the Board took note of all the relief measures utilized to decrease the effects of COVID-19, including liquidity measures and guidance and notices distributed to banks by the CBUAE.

The Board of Directors analyzed reports on financial system surveillance, the resilience of the UAE banking sector to stress, and macro-financial developments. The Board concluded the discussion on other agenda items and took appropriate decisions.