Banks will soon be punished for offering loans to people who cannot pay them back, the governor of the Central Bank has told the FNC.
Sultan Al Suwaidi told FNC members at their session last month that a new law protecting UAE consumers' rights was in the works and would soon be put to the council for approval. It would include fines for banks that lend to borrowers who cannot afford to repay, he said. He did not provide details of how this system might work.
Members told the governor that banks were taking too much of debtors' salaries as repayment, despite three existing laws - under federal, human resources and pension law - that cap debt payments at a third of salary.
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