ABU DHABI: The Central Financial institution of the United Arab Emirates has issued its first license underneath a system of low-risk specialist banks designed to serve residents of the United Arab Emirates, WAM reported.
The central financial institution has set the utmost complete belongings of specialised low-risk banks at a most of 25 billion dirhams, the Al Roeya newspaper reported.
Possession of residents shouldn’t be lower than 60 p.c of paid-up capital, and no particular person participation within the specialised financial institution ought to exceed 20 p.c of complete shares, except in any other case granted by the central financial institution.
Enterprise loans mustn’t exceed 50 p.c of complete loans from specialised banks and complete enterprise financing mustn’t exceed 40 p.c of complete finance.
The brand new low-risk banking system specified the licensed credit score anchors for the specialised financial institution at 10% of the whole fairness of the financial institution for a single borrower, 15% for a bunch of linked debtors, 10% of the fairness for the banks. subsidiaries and sister firms, and 20 instances the wage or 2 p.c of the whole share of complete capital of financial institution workers.
The system permits specialised banks to hold out completely different authorized monetary actions and to difficulty credit score, debit and pay as you go playing cards in the event that they function with authorized cost programs within the nation.
These banks can solely present their licensed providers in native foreign money.
Specialised financial institution deposits and certificates of deposit mustn’t exceed 30 p.c of complete deposits and certificates of deposit and mustn’t exceed 10 p.c of complete fairness.
Specialised banks can difficulty debt securities in UAE dirhams solely and with the approval of the central financial institution, whereas international funding mustn’t exceed 25% of complete funding.
The system doesn’t permit loans to main shareholders and their subsidiaries, members of the board of administrators, exterior auditors, advisers and legal professionals.
The brand new low-risk banking system permits specialist banks to borrow from state banks.
The central financial institution will settle for license purposes for conventional or Islamic specialty banks, and it’s prohibited to function Islamic ATMs in conventional specialty banks.