UAE Central Bank extends lending cap - NBAD

UAE Central Bank extends lending cap – NBAD

The central bank unveiled exposure limit rules for commercial banks in April, introducing caps for loans made to local governments and their entities.

October 9, 2012 9:18 by Reuters

National Bank of Abu Dhabi (NBAD) said the United Arab Emirates central bank had extended its deadline to comply with limits on lending to state-linked companies by six months.

The central bank unveiled exposure limit rules for commercial banks in April, introducing caps for loans made to local governments and their entities. Lenders had until Sept. 30 to comply with the rules.

“The (central bank ) governor announced it was extended for six months at the last central bank meeting (with commercial banks in September),” Abdulla Saleh Abdulraheem, NBAD’s deputy chief executive, told Reuters on Tuesday.

“It’s a good step, it gives the banks time.”

Central bank officials were not immediately available for comment.