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Thursday 2 February 2023
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Higher capital availability ‘should be policy priority’

Dubai:  Moves to increase the availability of capital in the market should be a regional policy priority, although the outlook for the region’s banking sector remains positive overall, the head of research at Standard Chartered Bank has said.
Marios Maratheftis was addressing senior bankers on the latest developments in the local, regional and global economy. He singled out two ways to ease credit squeeze.
“I think we need a complete change and overhaul of the repo window& because the policy rate in the UAE is the repo rate,” Maratheftis said.

“But if no one is using the repo window, the repo rate will become irrelevant. It will not affect market interest rates, loan rates or deposit rates.
“We need to make sure the repo window is transparent so banks know how it can be used, what assets will be accepted as collateral. We also need to make sure it becomes part of business as usual.

“We need to make sure the repo window doesn’t have the restrictions it has currently that would make it simply an emergency facility.”
Maratheftis was addressing participants gathered at the monthly Bankers’ Lunch, organised by Sulai-man Al Mazroui, President of the Emirates Bankers Forum at the Dubai International Financial Centre (DIFC).


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