| UNITED ARAB EMIRATES CENTRAL BANK CIRCULAR NO : 394 DATE : 12/7/86 TO : ALL BANKS RE: ADVANCES TO DEPOSITS RATIO Dear Sirs, It has been decided to amend the advances to deposits ratio regulation introduced by the then Currency Board in 1977. The purpose of this is to late the said ratio more specifically to the measurement of liquidity. Accordingly, all banks in the U.A.E. will have to maintain a ratio not higher than 1:1 between :- - On one hand, the amount of loans and advances together with the amount of interbank placements with a remaining life of more than 3 months and, - on the other hand, the amount of stable resources comprising of : free own funds, interbank deposits received with a remaining life of more than six months and stable customer deposits. Local and foreign banks have to abide by the above ratio for their operations in the U.A.E. However, those local banks with branches abroad should also comply with the same rule on a worldwide consolidated basis.* Local banks may also be requested to include banking subsidiaries and affiliates abroad in their worldwide consolidated position. This will be determined on a case-by-c... |