The United Arab Emirates plans regulations to contain credit growth after Dubai’s real estate market boomed and then slumped, Central Bank Governor Sultan bin Nasser al-Suwaidi said.
“Mortgage loan regulations are coming,” al-Suwaidi told a conference today in Dubai. “The U.A.E. should have regulations to restrict credit growth when it reaches a certain level.”
Bank lending soared in the U.A.E. after Dubai, the second- largest emirate, opened its real estate market to foreigners in 2002, leading to a quadrupling of real estate prices. The global financial crisis caused a wave of defaults that forced U.A.E. banks to increase provisions for bad loans by 41 percent in the 12 months through August.
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