Copyright © 2021 Zawya. Last month, the Central Bank outlined a package of measures, worth AED 100 billion ($27.2bn), which is designed to help banks to support retail and business customers in overcoming some of the economic challenges they are facing in light of the impact of coronavirus, officially Covid-19. in COVID-19, Economy / UAE. ABU DHABI, 24th September, 2020 (WAM) -- Abdulhamid M. Saeed Alahmadi, Governor of the Central Bank of the UAE, CBUAE, yesterday conducted the quarterly meeting with CEOs of the largest banks operating in the UAE to discuss the continued preparedness of the banking sector to cope with the consequences of the COVID-19 pandemic. The 'targeted economic support scheme' (TESS), which was launched on 15 March, has three strands and has been put in place for a period of one year. 2 min. Their provision of support to markets in the UAE in this unprecedented time will help companies and individuals to emerge from the other end of this pandemic on semi-solid ground. August 09, 2020, 8:15 am / UAE. The main goal of TESS is to: The Central Bank of the UAE (CBUAE) announced on 12 April that a total amount of AED 10bn ($2.7bn) has been provided to banks in the form of zero interest funding under TESS since its launch, and that more than AED 61bn ($16.6) worth of lowered cash reserve requirements has already been facilitated under the scheme. TESS consists of an AED 50 billion allocated facility from the CBUAE for collateralised loans to be provided at zero cost to all banks licensed to operate in the UAE (TESS Facility) and AED 50 … More than 140,000 eligible customers have already benefited from the TESS liquidity facility. CBUAE expects all banks to participate in the TESS to mitigate the impact of COVID-19 Sep 24, 2020. Value of all capital and liquidity relief measures since March 14, 2020 reaches Dh256b UAE - The UAE Central Bank has extended its Targeted Economic Support Scheme (Tess) for another six months until June 30, 2021 to continue its support for the economy during the Covid-19 pandemic. This website and those in charge of the same shall follow comprehensive and … Copyright © 2020 Khaleej Times. The Central Bank of the UAE has also announced a gradual implementation schedule of the remaining parts of the Basel III compliance project in three stages, starting from Q2 2021 until Q2 2022 to apply international regulatory standards. The meeting also touched upon the systemic stability of banks … Bank CEO’s thanked the Central Bank of the UAE for extension of the TESS program which had helped managed key liquidity and customer concerns through a period of high uncertainty. The UAE Central Bank's board of directors on Monday reviewed the Targeted Economic Support Scheme (Tess) that was rolled out to mitigate the impact of Covid-19 and said it would reassess the programme in March and April next year. On 15 March 2020, the Central Bank of UAE launched the Targeted Economic Support Scheme (TESS) with a value of USD 69.7 billion (USD 13.6 billion). The Board of the Central Bank of the UAE (CBUAE) has decided to add on … read. By Waheed Abbas, Khaleej Times UAE - The UAE Central Bank has extended its Targeted Economic Support Scheme (Tess) for another six months until June 30, 2021 to continue its support for the economy during the Covid-19 pandemic. CBUAE Classification: Public Bank CEOs welcome TESS extension by CBUAE Abu Dhabi : H.E. From January 1, 2021, banks and finance companies participating in the Scheme will be able to provide new loans and facilities to customers affected by the pandemic within the applicable terms and conditions set by the Tess standards. The Central Bank of the United Arab Emirates (CBUAE) has introduced the AED 100 billion Targeted Economic Support Scheme (TESS), which came into effect on 15 March 2020. We can use your selection to show you more of the content that you’re interested in. Deepthi Nair . All Rights Reserved. Banks must, for instance, offer payment deferral relief for a period up to six months on instalment of loans or financing, that customers are not charged fees, penalties or interest in connection to payment deferrals, and further ensure that the credit risk profiles of customers receiving the relief are not adversely affected, for example. The Board of the Central Bank of the UAE (CBUAE), has decided on additional measures within the Targeted Economic Support Scheme (TESS), launched initially in March 2020 to further enhance the capacity of the banking sector to support the economy. UAE Central Bank reduces reserves requirement for demand deposits by 50 per cent. TESS consists of an AED 50 billion allocated facility from the CBUAE for collateralised loans to be provided at zero cost to all banks licensed to operate in the UAE (TESS Facility) and AED 50 … The Board of Directors of the Central Bank of the UAE (CBUAE) during its 6th meeting of the year, reviewed the functioning of Targeted Economic Support Scheme (TESS). ", "The measures announced by the UAE Central Bank – similar to provisions announced by other central banks worldwide – are intended to support and relieve the pressure on financial institutions, allowing them to offer the required relief and continued access to funding for businesses and individuals operating here in the UAE. 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Email us at editorial.zawya@refinitiv.com, or send us your company press releases to pressrelease.zawya@refinitiv.com. In late November, the central bank extended the validity of key components of TESS, meaning they will be in place until at least June 2021. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The Tess, the Dh100 billion stimulus package announced by the Central Bank on March 15, is a part of the UAE government’s overarching efforts to mitigate the impacts of the pandemic. Vehicles stop at a red light in front of the main branch of UAE Central Bank in Abu Dhabi, January 29, 2013. The UAE Central Bank has extended its Targeted Economic Support Scheme (Tess) for another six months until June 30, 2021 to continue its support for … UAE Central Bank’s TESS liquidity scheme availed by 26 banks . Under this new extension, the Central Bank will extend the duration of the Zero Cost Facility (ZCF) of Dh50 billion, which benefits retail and corporate banking customers and facilitates liquidity management for banks through collateralised funding at zero cost, for an additional period of six months. UAE Central Bank ramps up TESS scheme to support banking sector . Access the most comprehensive database of companies and officers in the Middle East and North Africa, covering all major sectors and industries, from Refinitiv. If you would like to continue using our website after making such changes to such privacy policy, this means that you accept them. The scheme was first launched in March 2020 to support individuals and private sector firms through a range of integrated relief measures to the banking sector related to funding, liquidity, lending and capital. Banks in the UAE have availed 30 percent of the AED50 billion ($13bn) Targeted Economic Support Scheme (TESS), according to the Central Bank of the UAE (CBUAE). CBUAE governor, Abdulhamid Saeed, said he believes TESS "will act as a catalyst to strengthen economic activity and effectively mitigate financial risk, while also ensuring that the businesses are prepared for the post-Covid-19 era". We use essential cookies to operate our website. 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They were placed on your computer when you launched this website. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. The Central Bank of the United Arab Emirates (CBUAE) has introduced the AED 100 billion Targeted Economic Support Scheme (TESS), which came into effect on 15 March 2020. The speed with which financial institutions are able to tap into these reserves and make these much-needed banking reliefs available will be very important. The amount allocated for TESS includes USD 13.6 billion collateralized loans by the Central Bank of UAE at zero cost to all banks operating in the country. Central Bank of The UAE shall reserve the right to make any minor or major change of privacy policy Terms and Conditions from time to time without any prior notice. It took place under the chairmanship of Hareb Masood Al Darmaki, the Chairman of the Board. The Central Bank of the UAE (CBUAE) has announced the extension of the applicability period of the key components of its economic stimulus package until June 30, 2021. The directive will encourage banks to strengthen the TESS scheme and support impacted customers in overcoming the impact of the pandemic. Dubai-based Tom Bicknell of Pinsent Masons, the law firm behind Out-Law, said: "Banks have a crucial role to play in supporting businesses and individuals to keep afloat and mitigate the impact of Covid-19. Using this tool will set a cookie on your device to remember your preferences. To reject all non-essential cookies, modify your preferences, or read more about our use of cookies, click ‘Change settings’. It said: "The Central Bank encourages all boards and management of Banks to accelerate their confirmation to implement TESS measures as soon as possible. Change language and content customisation. Earlier this month, the Central Bank of the UAE extended the Dh50 billion Tess programme until June 30 next year in an effort to continue supporting the economy. “The Central Bank remains committed to supporting the financial system of the UAE by taking the required measures to accelerate economic recovery from Covid-19 repercussions. Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. Have news to share? The extension of applicability period of the Tess will provide relief for retail, small and medium sized enterprises, and corporate banking customers. On 15 March 2020, the Central Bank of UAE launched the Targeted Economic Support Scheme (TESS) with a value of USD 69.7 billion (USD 13.6 billion). The Central Bank of the UAE praised the UAE leadership for its efforts in aiding the country's economic recovery. TESS is a program by the UAE central bank to protect vulnerable borrowers during COVID19 difficult times.#UAE #centralbank #TESS To date, the Tess loan deferral programme benefited more than 310,000 retail customers, nearly 10,000 small and medium sized enterprises, and more than 1,500 private sector corporates. You can change your cookie settings through your browser. If you would like to continue using our website after making such changes to such privacy policy, this means that you accept them. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. All Rights Reserved. In the aftermath of the Covid-19 pandemic, a total of 26 banks availed the Targeted Economic Support Scheme (TESS) liquidity facility introduced by the CBUAE in March earlier this year. The meeting was held via video conference on Tuesday, June 16, 2020. “The fact that they’ve extended key aspects of the TESS programme either to the middle or the end of 2021 is a very positive indication that the central bank understands the pressures on the real economy,” says Ms Malik. Move will provide relief for banks, finance companies enabling them to provide new loans, facilities to customers affected by the pandemic. SHARE. During the drill, the participating banks were exposed to real-time cyber attack scenarios to assess and apply crisis management strategies, the regulator said in a statement on … Share on Facebook Share on Twitter. The Central Bank of the United Arab Emirates (CBUAE) has introduced the AED 100 billion Targeted Economic Support Scheme (TESS), which came into effect on 15 March 2020. September 24, 2020. We believe that this initiative will shield the economy from the impact of the pandemic and place us in an ideal position to recover, once the pandemic is over,” said Abdulhamid M. Saeed Alahmadi, governor of the Central Bank of the UAE. This website uses cookies to improve your online experience. This website and those in charge of the same shall follow comprehensive and … The Targeted Economic Support Scheme (TESS) was launched in March 2020 to support the UAE’s economy during the COVID-19 pandemic, through a range of integrated relief measures to the banking … The Central Bank of the UAE and the UAE Banks Federation conducted a cyber attack simulation exercise to check how well equipped the country's banking sector is to counter potential cyber threats. The main goal of TESS is to: facilitate payments of outstanding loans … The Central Bank of the UAE (CBUAE) announced on 12 April that a total amount of AED 10bn ($2.7bn) has been provided to banks in the form of zero interest funding under TESS since its launch, and that more than AED 61bn ($16.6) worth of lowered cash reserve requirements has already been facilitated under the scheme. Central Bank of UAE monitors banks’ utilisation of Targeted Economic Support Scheme. ABU DHABI, (UrduPoint / Pakistan Point News / WAM - 23rd Sep, 2020) A total of AED44.72 bn of the AED50 billion liquidity facility provided by the Central Bank of the United Arab Emirates (CBUAE) to the UAE banking sector as part of the Targeted Economic Support Scheme(TESS) has been drawn down by UAE lenders until the end of July, figures released by the CBUAE have … From our side, CBUAE will be reaching out to the banks during the coming days to better understand how they plan to serve the objectives of TESS and help their customers to cope with the consequences of COVID-19 pandemic.". SHARE. We'd also like to use some non-essential cookies. Ryan Carter / The National. 26 banks availed TESS liquidity facility, with 17 banks drawing down 100%: CBUAE ABU DHABI, 17th June, 2020 (WAM) -- The Board of Directors of the Central Bank of the UAE (CBUAE) held its 6th meeting this year via video conference on Tuesday, June 16, 2020. Out-Law News | 15 Apr 2020 | 8:48 am | CEO’s also applauded the continued relaxation of various regulatory parameters to help banks and stimulate the economy at the meeting. facebook shares. Image used for illustrative purpose. To accept all cookies click 'Accept all'. The scheme was launched on March 15 to help individuals, SMEs and other private businesses impacted by the current coronavirus crisis. Central Bank of the UAE said this easure will support the implementation of the already adopted TESS measures worth AED256 billion The Central Bank of the UAE has announced a further measure that it says will further enhance the capacity of the banking sector to support the economy, and give banks “enhanced flexibility in managing their balance sheets”. Abu Dhabi (16 November 2020): The Central Bank of the UAE (CBUAE) has announced the extension of the applicability period of the key components of its economic stimulus package, the Targeted Economic Support Scheme (TESS) until 30 June 2021. More than 300,000 individuals have benefited from the Targeted Economic Support Scheme (Tess) rolled out to mitigate the impact of Covid-19, the UAE Central Bank … The amount allocated for TESS includes USD 13.6 billion collateralized loans by the Central Bank of UAE at zero cost to all banks operating in the country. Daniel Richards, Mena economist at Emirates NBD Research, said banks will be able to extend deferrals to customers who qualify for support under this scheme. Central BanK announces additional stimulus under TESS By DG Staff ABU DHABI 9 August 2020 : The Board of the Central Bank of the UAE (CBUAE), has decided on additional measures within the Targeted Economic Support Scheme (TESS), launched initially in March 2020 to further enhance the capacity of the banking sector to support the economy. Screen, analyze and compare projects in the Middle East and North Africa across Infrastructure, Real Estate, Industrial and Energy sectors with Refinitiv’s Eikon. The Central Bank of the UAE has called on banks across the emirates to "accelerate" their implementation of support measures for businesses in light of the coronavirus pandemic. Quickly uncover hidden opportunities with comprehensive data and content. Provided by SyndiGate Media Inc. (Syndigate.info). Your device to remember your preferences responsible for, and corporate banking customers Abu Dhabi, 29... 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