Regulatory Alerts2023-12-29
Recovery Planning Regulation
The Central Bank of the UAE issued the Recovery Planning Regulation to mandate that licensed financial institutions, including banks and insurance companies, establish comprehensive recovery plans to ensure resilience during severe financial stress. The regulation requires these plans to include detailed governance frameworks, stress testing scenarios, recovery options, and communication strategies tailored to the institution's complexity and critical functions. Furthermore, it establishes specific requirements for group-wide recovery planning, the integration of Shariah compliance for Islamic institutions, and enforcement mechanisms with associated sanctions for non-compliance.
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