| Kippreport.com

UAE banks to see more bad loans this year

February 9, 2010 12:01 by kippreport

Banks in the UAE may need to write-off more loans this year, as non-performing loans are expected to increase to 6.4 percent, up from 4.4 percent in 2009, Saeed Abdullah al-Hamiz, senior executive director of the banking supervision and examination at the central bank told reporters on Tuesday.

“This increase is natural since there is a crisis in the world and there is a deterioration in rent prices,” al-Hamiz said. “[Banks] may have to write it off,” he added.

“Some banks are very conservative, more than others, especially the foreign banks,” he said. “Already, some banks took more provisions because they want to protect themselves.”

Tags: 2010, bad loans, Central Bank, crisis, UAE banks