The Board of Directors of the Central Bank of the UAE held its 2nd meeting for 2016 on Sunday, 10 April 2016, to reviewed a memorandum regarding formation of the Higher Sharia Authority, along with draft of proposed charter of the authority, which will be established over the coming period, and shall comprise Sharia scholars, legal and banking experts. The authority shall lay down rules, criteria and general principles for Sharia compliant financial and banking activities, and shall also undertake oversight and supervision of internal Sharia control committees at licensed banks and other financial institutions which carry on all or part of their activities in accordance with Islamic Sharia.

Held at the Central Bank – Abu Dhabi, under the chairmanship of Khalifa Mohammed Al Kindi, Chairman of the Board, and attended by other members of the board and a group of senior Central Bank staff, the meeting also reviewed a presentation on implementation of the human resources strategy, procedures and regulations and the Central Bank’s organizational structure. The Board instructed expedition of execution of the proposed initiatives as per established plan. The Board then reviewed a presentation by the Monetary Operations & Reserves Management Department, on Emirates Inter-bank Offer Rate (EIBOR) and instructed necessary action be taken in this regard.

The Board also reviewed Central Bank’s Annual Report for the year 2015, presented by the Research & Statistics Department. The report covered international economic developments, domestic economic development, financial stability indicators, banking liquidity, monetary reserves management, and payment systems developments, in addition to Central Bank’s policy priorities in 2015. After taking note of the report, the board instructed publication of the report on the Central Bank’s Website.

The Board also reviewed a presentation, submitted by the Digital Payments Project team; regarding latest developments and a follow-up of what has been achieved in relation to preparation and issuance of rules and procedures for stored-value, electronic payment systems, and payment, clearing and settlement in the UAE. The board instructed to proceed with the necessary steps.

On the other hand the Board reviewed applications submitted by banks & other financial institutions operating in the UAE for the expansion of their activities and opening new branches. The Board approved the applications that fulfilled the conditions as per applicable law and regulations concerning each individual activity.

The board also reviewed some reports presented by the Banking Supervision Department, showing status of compliance of banks and other financial institutions with Central Bank’s regulatory rules. The board instructed necessary actions be taken to ensure protection of the banking sector and enhance its soundness and stability.

The board reviewed an issue presented by the Financial Control Division, regarding the financial and accounting system, and provided its remarks and comments thereon.

The Board also reviewed the following reports: - Internal Audit Department’s Quarterly Report (Dec. 2015).

- The External Auditor’s Report on the Financial Statements as at 31 December 2015.

The Board then endorsed the Central Bank’s Audited Annual Accounts for the financial year ending on 31/12/2015.

The board also reviewed issues presented by the Internal Audit Department regarding: - Appointment of an External Auditor for Central Bank’s accounts for the financial year 2016.

- The revised Internal Audit Manual.

The board took appropriate decisions in respect of these topics.

The Board then discussed a memorandum submitted by the Banking Operations Department regarding re-minting new quantities of currency coins of denominations 50 fills, 25 fills and 10 fills, using multi-ply technology.

The board also reviewed a report on latest developments in implementation of the Central Bank’s IT Strategy Program and instructed commencement of execution of the program and completion thereof according to established schedule.

The Board then reviewed developments of the Disaster Recovery Center and provided feedback and remarks.

The Board also reviewed some issues presented by the Human Resources Division, regarding development of some internal regulations, and took appropriate decisions in respect thereof.

The Board completed the discussion of the remaining topics listed on its agenda, as well as other topics and took appropriate decisions in this regard.

Source:WAM