The UAE needs to inject in excess of AED100bn ($27.2 bn) into its banking sector to bring the advances to deposit ratio below 100 percent and improve liquidity conditions, Standard Chartered said on Monday.
“The first and most important agenda priority for the UAE is to fix the liquidity problem so that the banks could start lending again,” analysts at Standard Chartered wrote in a research note.
The Abu Dhabi government last week announced that it would inject $4.36bn into five banks, but experts say that more cash is needed, with Dubai yet to announce any such measures.
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