The United Arab Emirates' central bank could grant exemptions to some banks over planned lending limits to sovereign and state-linked entities, pushing compliance beyond the September 30 deadline, its chairman told a
local newspaper on Wednesday.
The regulator said in April's ruling it would cap lending at 100 percent of a bank's capital base to governments of the seven-member UAE federation and their non-commercial entities, and 25 percent to individual borrowers, the first such change to the rules in nearly two decades.
A number of UAE banks - including the country's big two, Dubai's Emirates NBD and National Bank of Abu Dhabi - are over the limit and have said they would discuss with the authorities about how to manage their balance sheets in light of the rule-change.
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