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UAE banks instructed to boost provisions

Banks operating in the UAE have been instructed by the central bank to book provisions on a quarterly basis starting this year, Gulf Daily News has reported. "The central bank is also reiterating that provisions are compulsory every quarter because some banks did not follow this guideline last year," a senior banker was quoted as saying. The central bank issued a clarification and guidance manual to banks dated January 27 advising them to follow guidelines issued last November. The new rules are in line with the Basel Committee on Banking Supervision standards. "Banks had issues in interpreting the November circular. The latest one is a detailed clarification," the banker said.