UAE banks' lending to govt 'tops $42 billion'

UAE banks' lending to govt 'tops $42 billion':

"United Arab Emirates banks' exposure to government-related entities is at its highest level as a percentage of capital since the 1970s, and there is little chance of authorities enforcing strict exposure limits, analysts at Bank of America Merrill Lynch said.

The domestic banking sector has extended a whopping $42 billion in credit to the government and government-related enterprises (GREs) since the 2008 banking crisis.

As a result, exposure to the government and non-financial public enterprises as a percentage of bank capital is at 104 percent, the highest ratio since the late 1970s, the researchers said in a note."

'via Blog this'