UAE C.Bank now free to link banks' exposure to real estate to market strength- senior banker | Reuters:
The United Arab Emirates’ central bank now has the flexibility to set new exposure limits for banks to the real estate sector and can amend these to reflect market performance, a senior commercial banker said on Sunday
A new law introduced last month abolished a cap, dating from 1980, that restricted each bank’s lending to the construction and real estate sectors to a maximum of 20 percent of total deposits.
No new cap has been imposed, but Abdulaziz al-Ghurair, chairman of the UAE Banks Federation, said his federation has liaised with the central bank on what should be defined as real estate, suggesting a new cap could be looming.
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