UPDATE 1-UAE to impose watered-down exposure rules on banks | Reuters

UPDATE 1-UAE to impose watered-down exposure rules on banks | Reuters:

"The central bank of the United Arab Emirates has eased planned curbs on commercial banks' exposure to state-linked debt, giving them five years to comply after the banks complained that the rules could hurt their business.

As part of efforts to reduce risk for banks and prevent any repeat of Dubai's 2009-2010 corporate debt crisis, the central bank announced early last year that banks would have until the end of September 2012 to restrict their lending to the government and state-linked entities.

Each bank would have to cap such lending at 100 percent of its capital base, with lending to a single borrower limited to 25 percent.

The rules were suspended after lobbying by the banks, however, and central bank governor Sultan Nasser al-Suweidi on Tuesday outlined substitute rules that were much less harsh."

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