DIB Drops as Banks Seek Time to Comply With Curbs: Dubai Mover - Bloomberg

DIB Drops as Banks Seek Time to Comply With Curbs: Dubai Mover - Bloomberg:

"Dubai Islamic Bank PJSC (DIB) retreated the most in two weeks after United Arab Emirates lenders asked the central bank for five years to comply with requirements to reduce their exposure to the government.
Shares of Dubai Islamic, the U.A.E.’s biggest Shariah-compliant lender, fell 1.7 percent, the most since July 2, to 3.38 dirhams at the close in Dubai. The stock was the biggest decliner by index (DFMGI) points on the benchmark DFM General Index, which ended an eight-day winning streak, decreasing 0.5 percent. Emirates NBD PJSC (EMIRATES), Dubai’s biggest bank, lost 2 percent.
The U.A.E. Banks Federation said yesterday it was seeking an extension to comply with a central bank directive requiring banks to lend no more than 100 percent of their capital to local governments and the same to government-related entities, known as GREs. The rules were introduced more than a year ago after many banks suffered from an increase in bad loans linked to debt restructuring by GREs during Dubai’s property crash."

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