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10  May
2019

UAE national banks' capital adequacy ratio up to 17.5% by end of March

UAE national banks' capital adequacy ratio up to 17.5% by end of March

The UAE national banks' solvency hit a three-year high, with the capital adequacy ratio (tier 1 tier 2) standing at 17.5 percent by the end of March 2019.
 
The robust solvency profile of the UAE national banks coincided with a rise in the capital adequacy ratio tier 1 capital from 16 percent by the end of 2018 to 16.3 percent in March 2019, therefore meeting the requirements of BASEL III which stipulates that a bank's tier 1 and tier 2 capital must be at least 8% of its risk-weighted assets.
 
In a related development, the loan-to-deposit ratio at UAE national banks reached 96 percent during Q1 -2019, with liquid assets standing at 16 percent of the total assets.

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