Systemic Liquidity Management in the U.A.E.: Issues and Options

Author/Editor:

Alexandre Chailloux ; Dalia S Hakura

Publication Date:

December 1, 2009

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The paper analyzes the U.A.E.'s liquidity management framework in the context of the 2008 global financial crisis and the measures taken by the Central Bank of the U.A.E. to ease liquidity pressures in the second half of 2008. Drawing also on an empirical analysis of data for 15 U.A.E. banks through end-2008, the paper emphasizes the importance of making available to banks additional instruments to manage their liquidity as well as to strengthen the monitoring of a more comprehensive set of liquidity risk indicators. As regards the former, the paper discusses the merits and scope for the U.A.E. to introduce a domestic bond market.

Series:

Working Paper No. 2009/261

Subject:

Banking Commercial banks Liquidity Liquidity management Liquidity risk

Frequency:

Quarterly

English

Publication Date:

December 1, 2009

ISBN/ISSN:

9781451874068/1018-5941

Stock No:

WPIEA2009261

Pages:

30

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