UAE delays new rules on bank lending to govts



DUBAI: The central bank of the United Arab Emirates postponed new regulations that cap bank lending to governments and their related companies for further review.

The implementation of the Large Exposure Regulations, that came into effect in September, has been postponed 'until all items of the regulations are reviewed with banks,' the Abu Dhabi-based central bank said in an e-mailed statement yesterday.

New liquidity rules scheduled for January, 1 will also be delayed.

The postponements come after Emirates NBD PJSC, the UAE's biggest bank by assets, and second-ranked National Bank of Abu Dhabi PJSC did not meet the September deadline to comply with the new lending rule. The central bank said on April 4 that banks cannot lend more than hundred per cent of their capital to local governments and the same to state-related entities as part of a plan to reduce so-called concentration risk.

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