1134 GMT - U.A.E. banks remain well positioned to absorb potential capital outflows despite elevated regional geopolitical risks, S&P Global Ratings says. The banking system held about $247 billion in net external assets at the end of June, equivalent to roughly 42% of domestic loans and the strongest position among GCC banking systems. A large and diversified domestic deposit base and high-quality liquid assets provide an additional buffer, while banks' direct credit exposure to sectors most vulnerable to the conflict remains limited, S&P says.