More Dubai Aftershocks: UAE Central Bank Affirms Support for Banking Sector

The Central Bank of the UAE issued a press release today:

1. advising that it was making available an additional liquidity facility to both domestic banks and branches of foreign banks in the Federation
2. noting that the UAE banking sector was in better shape than it had been one year ago
3. pointing out that the banking system is composed only of retail banks with stable deposits  "the best banking model"
4. in light of the previous comment, it noted that UAE banks get most of their funding from customers with interbank deposits only at 10.3% of aggregate liabilities and foreign deposits only 5%

Issuing such a statement during the Eid Holiday indicates a strong concern at the CB UAE about a potential run on banks tomorrow.

This is in line with rumors of heightened expat "chatter" about securing their funds.