Central Bank: Asset Quality Peaks Q2 2026
The Central Bank of the United Arab Emirates confirmed that the quality of assets in the UAE banking sector has significantly improved by the end of the second quarter of 2026, reflecting the resilience of the financial system. Non-performing loans decreased to 76 billion dirhams, representing a decline of 5.4 percentage points. The NPL ratio recorded its lowest level at 2.8%, while the net non-performing loan ratio reached a historic low of 1.3%. This improvement results from effective regulatory measures, including review and inspection processes, the implementation of a comprehensive credit risk management standards framework, as well as a support package that allowed for the postponement of loan repayments totaling 13.5 billion dirhams for beneficiaries from both the individual and corporate sectors. Additionally, the sector demonstrated strong growth, with assets increasing by 12.5%, deposits by 14%, and loans by 18.1%.
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