Dubai: As UAE banks continue to report strong recovery, analysts and bankers fear the full withdrawal of the Central Bank of UAE’s liquidity (CBUAE) support schemes and other forbearance measures will impact the overall loan growth, asset quality and profitability in the second half of 2022.

A significant share of the direct liquidity support to UAE banks under the CBUAE’s Targeted Economic Support Scheme (TESS) will come to a close by June end.
The CBUAE had made available more than Dh260 billion worth of direct and indirect liquidity support to the UAE banks following the Covid outbreak that impacted the economic activities.