Abu Dhabi – Mubasher: The UAE banks' reserve requirement increased by the end of July1.2% to AED 119.9 billion ($32.6 billion) from AED 118.5 billion a month earlier, according to data issued by the central bank.
The free reserve also grew 9.6% during the same month to AED 21.6 billion, compared with AED 19.7 billion for June.
"The central bank's precautionary policies are a safe valve for UAE banks that play a major role in many projects amid sharp fluctuation of the global economy", economic analyst Ahmed Abd Aljalil told Mubasher.
These reserves were a back-up for banks over the financial crisis in 2008, when the central banks pumped more than AED 70 billion to strengthen their financial position, the analyst concluded.
