Banks in the United Arab Emirates, hurt by exposure to debt-laden Dubai World, must book provisions on a quarterly basis starting this year, according to a circular from the Central Bank, which is pushing for transparency in the country's banking system.
The UAE Central Bank issued a clarification and guidance manual to banks dated Jan 27 advising them to follow guidelines issued last November. The new rules are in line with the Basel Committee on Banking Supervision standards.
"Banks had issues in interpreting the November circular. The latest one is a detailed clarification," a senior banker said.
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