Banks are required to hold an amount equivalent to the specified percentage set by the Central Bank of their total liabilities in eligible liquid assets, consisting of the following items:

• Account balances at the Central Bank.
   
• Physical cash at the bank.
   
• Central Bank Certificates of Deposit (CDs).
   
• UAE Federal Government bonds and Sukuk.
   
• Reserve requirements.
   
• UAE local governments and public sector entities publicly traded debt securities, provided they are assigned a 0% risk weighting under Basel II standardized approach (limited to 20% of eligible liquid assets).
   
• Foreign, Sovereign debt instruments or instruments issued by their respective central banks, which receive 0% Risk Weight under Basel II Standardized approach (limited to 15% of eligible liquid assets).

This ratio will become effective on 1 July 2015. The initial compliance level for this ratio is set at 10 percent. The Central Bank will periodically review this ratio to ensure consistency between banks in the application of liquidity requirements in the UAE.