24
ANNUAL REPORT 2015
Close-out netting to
become law
The UAE Central Bank has supported the
proposal of UBF regarding ‘close-out netting’,
the process whereby counterparties who
have a number of obligations to each other,
can agree to offset and net those obligations
in order to reduce exposure and therefore
risk between two counterparties.
In November 2015, the Ministerial Council
for Services approved the drafting of a federal
Further to its initiative in 2012 on
legal bank experts, UBF continued its
colaboration during 2015 with the
Ministry of Justice and the UAE Central
Bank, which yielded the adoption of
a expert classification system by the
Ministry of Justice.
The criteria for classification of
candidates
include
professional
experience record, academic credentials,
and completion of training courses.
The move is in line with the UBF’s
aim of keeping up with the latest global
developments and application of best
international practices to enhance
the banking industry. Streamlining the
legal banking experts’ profession is
considered a significant initiative and in
that way will serve the economy.
UBF help set criteria for
Bank Experts
ACTIVITIES
law on ‘netting’ aimed at regulating contracts
and transactions in line with international
best practices. Enshrining close-out netting
into UAE federal legislation would improve
the stability of financial markets in the UAE,
increase the availability of credit to, and
reduce costs for, UAE entities and support
the UAE’s commitment to adopt international
standards and best practices.
