A top commercial banker in the United Arab Emirates has urged the central bank to cut some of its reserve requirements sharply in order to spur corporate lending.
"What we are asking for now is to provide greater liquidity and release reserve funds...which the banks can use," Abdul Aziz al-Ghurair, chief executive of Mashreq bank, was quoted by Monday's Al Bayan newspaper as saying. Mashreq confirmed his comments to Reuters.
Ghurair suggested cash reserve requirements imposed by the central bank on banks' current accounts be slashed to just 1 percent from 14 percent to free more funds for lending. Reserve requirements for time deposits are already at that level.
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