The board of Directors exercises all powers required for attaining the objectives
for which the Bank has been established. It is particularly empowerd to:
1) determine: the Bank’s credit and monetary policy as well as
the policy pertaining to the investment of foreign assets, and
ensure the Bank’s effective performance of its duties;
2) decide on matters relating to the issue and Withdrawal of
3) Set the Bank’s by-laws and define its powers and functions
in conformity with the provisions of this Law;
4) Establish rules for the discounting of commercial paper;
5) Fix the rates of discount, interest and commission to be
charged by the Bank.
6) decide on matters relating to the organization of ,and super-vision over banking in accordance with the provisions of this
7) Establish rules to govern the granting of loans and advances
to domestic banks, define the upper limits of such loans and
advances and specify the collateral security required therefor;
8) Decide on advances to the Government in accordance with
the provisions of this Law;
9) Establish clearing houses and set up a Credit Risks Bureau.
10) approve the Bank’s annual budget and amend it as necessary
in the course of the year;
11) approve the Bank’s final balance sheet and profit and loss
12) approve the Bank’s annual report;
13) set rules to govern the rights and duties of the Bank’s
personnel, establish a retirement fund for them and determine
the Bank’s contribution to that fund;
14) appoint the Bank’s senior staff, promote them and terminate
their services in accordance with the Bank’s Staff Regulations.
15) set the rules governing the salary,
allowances and entitlements of the Governor and the Deputy
Governor, as well as the remuneration and allowances of the Chairman and members of the Board of Directors. A Union
Decree to this effect shall be promulgated upon approval of the
Council of Ministers.
The Board of Directors meets ordinarily once every 45 days. Nevertheless, it may convene according to the Chairmain′s invitation based on the request of the Minister or at least 3 board members.
Five members of the Board of Directors including the Chairman,
or the Deputy Chairman, or the Governor, constitute
a quorum at any meeting. Decisions of the Board of Directors are taken by a majority vote of the members present. In case of equal votes, the Chairman of the session has a deciding vote.
Chapter 4 of the Union Law No 10 for the year 1980 organized the Management of the Central Bank, meaning its Board of Directors through out articles 11 to 30.
Mode of Election
Members of the Board of Directors are appointed by a Union Decree after approval of the Council of Ministers.
They serve for four years renewable for similar four years.
The Chairman, the Deputy Chairman and the Governor, all have the rank of Ministers.
Members of the Board of Directors must be experienced in banking and financial affairs.
Members of the Board of Directors may not be members of the
Board of Directors of any commercial bank operating in the
United Arab Emirates, unless they are such members in their
capacity as representatives of the public sector. Nor may any of
the members of the Board be a Minister having cabinet status or
be a member of the Federal National Council.
A member of the Board is obliged to resign if he:
a) Has been declare bankrupt or has suspended payments;
b) Has been convicted of an offense involving moral
turpitude or dishonesty unless he has been rehabilitated.
Also, the term of Office of a member of the Board of Directors may
be terminated by a Union Decree promulgated pursuant to
approval of the Council of Ministers in either of the following
two cases :
a) if he commits a serious breach of duty, or any grave
mistakes in management of the Bank;
b) if he absents himself from three consecutive meetings of the
Board of Directors without the Board of Directors’ approval,
unless such absence is due to his being on official assignment,
annual or sick leave, or for any other acceptable
(last updated: 04-September-2002)
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