UAE tells banks to up provisions sharply

Image via Wikipedia

The United Arab Emirates central bank has directed banks to take provisions up to 75 percent against their exposure to a pair of troubled Saudi firms over two years, bankers told Reuters on Thursday.

The central bank held a meeting with bankers last Thursday to review the lenders' reports on their exposure to Saad Group and Ahmad Hamad Al-Gosaibi & Bros.

"According to the guidance of the central bank, banks should take provisions of 50 percent over two years on exposure to Al-Gosaibi and 75 percent on exposure to Saad," a banker who attended the meeting said.