Banks offers relief to customers

Abdulhamid Saeed, Governor of the Central Bank of the UAE, had said: “We will continue to work closely with banks and financial institutions to accelerate their full utilisation of the Tess. This requires banks to closely collaborate with us and intensify their efforts to implement the economic stimulus package for the benefit of the banking sector and the UAE economy.”

On April 5, the central bank doubled the size of its stimulus package from Dh126 billion to Dh256 billion and allowed banks and finance companies in the country to extend deferrals of principal and interest payments to their customers until December 31, 2020.

The new funds consisted of Dh50 billion capital buffer relief banks, Dh50 billion funds available at zero cost to extend finance, Dh95 billion to ensure that there is enough liquidity in the market and Dh61 billion reduction of cash reserve requirements.

Abu Dhabi Commercial Bank, Bank of Sharjah, Commercial Bank

International, Dubai Islamic Bank, Emirates NBD, Emirates Islamic Bank, First Abu Dhabi Bank, Invest Bank, Noor Bank and National Bank of Fujairah availed 100 per cent of funds.

While Arab bank for Investment & Foreign Trade, Arab Bank, Mashreq Bank, Sharjah Islamic Bank, RAK Bank, UAQ Bank and United Arab Bank availed less than 100 per cent of funds.

Jitendra Gianchandani, chairman of Jitendra Consulting Group, said the banks, who have availed stimulus package, must utilise the funds to bailout the individuals and companies, big and small to infuse the liquidity in the market and avoid catastrophic damage in the coming days.

“I expect since banks are receiving stimulus package at zero cost the same benefits will be passed on to the customers.”