Regulatory Alerts2021-04-01
Guidance for Capital Adequacy of Banks in the UAE
The Central Bank of the UAE issued this December 2022 guidance to ensure consistent implementation of Basel III-aligned capital adequacy requirements for banks. The document details regulatory treatments for Tier 1 capital, including deductions for intangibles and deferred tax assets, while specifying risk-weighting methodologies for significant investments in financial and commercial entities. It further mandates the calculation of countercyclical capital buffers based on the geographic ultimate risk of private sector credit exposures and outlines compliance procedures for Pillar 2 and Pillar 3 disclosures.
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