Skip to main content
Entire section Custom print Text Only Rich Text Print

Article (4): Quality of the Capital to be Held

C 12/2021 Effective from 14/3/2021
  1. 4.1 The minimum capital requirement in this Regulation must be met solely with fully paid-up capital.
     
  2. 4.2 For branches of foreign banks, fully paid-up capital at branch level shall mean funds allocated to the branch with the following characteristics:
     
    1. 4.2.1 the allocated funds are irrevocable, unconditional, and not subject to any restrictions;
       
    2. 4.2.2 the allocated funds do not bear any interest;
       
    3. 4.2.3 the allocated funds are paid in UAE Dirham only; and,
       
    4. 4.2.4 the head office has signed an undertaking to cover any shortfalls in fully paid-up capital.
       
    5. 4.3 For branches of foreign banks, eligible capital at entity level shall mean regulatory capital as defined under the Basel framework as implemented in the jurisdiction where the bank is incorporated.