UAE may fine banks for bad loans
The United Arab Emirates may soon fine banks which grant loans to consumers who are unable to pay back the debt, the central bank governor was quoted as saying in remarks published on Saturday.
June 9, 2012 10:25 by Reuters
The UAE is working on a law to protect consumers’ rights, which would include “fines for banks that lend to borrowers who cannot afford to repay”, The National newspaper quoted Sultan Nasser al-Suweidi as saying.
The governor was speaking at a meeting last month of the Federal National Council, an elected body which advises the government, the paper said. He did not give further details.
The UAE is still recovering from its 2009-2010 corporate debt crisis. Banks’ provisions against bad loans rose 25 percent from a year earlier to 55.3 billion dirhams ($15.1 billion) last December, central bank data show.
In April, the central bank expanded its large-exposure limit rules for commercial banks, introducing new caps for loans made to local governments and their entities in the first such change in nearly two decades.
In addition to preventing banks from putting themselves at risk, authorities want to restrain excessive lending in order to improve the welfare of middle- and lower-income citizens. Last month, state news agency WAM said the government would pay off up to 5 million dirhams of defaulted loans for each indebted Emirati. (Writing by Rania El Gamal; Editing by Andrew Torchia)
More on All News
-
Dubai ruler makes horse doping illegal
-
CEO-elect of UAE’s fraud-hit RAKBANK has quit
-
Saudi Arabia confirms another death from SARS-like virus
-
Prepaid cards available across the UAE
-
The strike will go on
-
Iranians face new Internet curbs
-
Bahrain’s Batelco CEO leaves with immediate effect
-
Morocco To Launch 4G Mobile License Tenders
-
Arabtec Says Workers End Strike
-
Kuwaiti Oil Service Workers On Strike Over Pay – Union
-
Qatar’s Doha Bank May Sell Bonds To Raise Capital – CEO
-
Qatar to announce new energy infrastructure fund
-
Qatar Holding, Italy Fund Eying Versace – Paper
-
Tesco Clothing Brand Plans International Expansion
-
Saudi government websites targeted
-
NCoV – First report of patient-to-nurse spread
-
Struggling Singapore Airlines fights back
-
Saudi regulations target stock market speculators
-
Dubai’s Arqaam Capital Eyes South Africa, Saudi Expansion
-
U.S. Targets Two UAE Firms For Dealing With Blacklisted Iran Banks
Lately on Kipp
-
Dubai ruler makes horse doping illegal
-
CEO-elect of UAE’s fraud-hit RAKBANK has quit
-
Over 90% of passwords vulnerable to hacking
-
‘Renewable energy absolutely necessary’ – Saudi
-
NEC Display Solutions launches Full HD 3D ready compact meeting room projector
-
Saudi Arabia confirms another death from SARS-like virus
2 Comments
Central bank and UAE government should make first a main law to stop banks harrassing people and treat them as criminals . This never happens in any country in the whole world except here in UAE where banks does not cooperate at all with clients and give him easy payment plan on an excuse (banks poilcy) as if this bank policy is a Quaran or Bible that cant be changed. They know client financial problems and still they dont care and threaten him, keep his name at airport , put cheque in police, spoil and destroy his life and family and at end , still they dont care and will come back BANK POLICY. We are in the 21 century and should ne treat people like criminals and like animals kept in jail or between four walls. Then how he or she can pay, hope others can comment and share their comments.
The worst hit are the English banks operating in the UAE. They came to make a “Quck buck” and are now paying dearly and will continue to bleed if they stay longer in the region. They had make banking in Dubai as a supermarket.