Tuesday, 16 July 2013

UAE Banks Federation proposes exposure limit | GulfNews.com

UAE Banks Federation proposes exposure limit | GulfNews.com:

"After its decision in September 2012 to postpone introducing restrictions on commercial banks’ exposure to state-linked debt and requirements for them to hold liquid assets following complaints from the banks, the UAE Banks Federation on Monday raised the final proposal on percentage limits that form the large exposure to the UAE Central Bank.
The UAE Banks Federation recommended the exclusion of marketable bonds and sukuks from the proposal and to apply means and purpose tests to determine whether the large exposure regulation applies to an entity, asking the Central Bank for a five-year term to fully comply with these regulations.
Giyas Gokkent, Group Chief Economist at NBAD, told Gulf News: “With regard to the large limit exposure: Bonds and sukuk are tradeable and, therefore, potentially liquid instruments.”"

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