Friday 22 April 2011

UAE cbank push helps drive down interbank rates-source | Reuters

United Arab Emirates interbank rates AEIBOR= fell to at least 14-month lows on Thursday, reflecting improved liquidity in the banking sector and a drive by the central bank to encourage lower rates and spur lending.

Traders said the central bank called a meeting of bank treasurers in recent days to encourage them to set lower interbank rates to try and boost lending which has been slow to pick up.

"The central bank has asked treasurers to come and see them at a group meeting, and the message was that EIBOR rates need to be lower. Some of the banks have kept EIBOR rates quite high," a trader at a UAE bank said.

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