UAE banks to struggle to revive lending
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UAE banks to struggle to revive lending

UAE banks to struggle to revive lending

Analysts expect UAE lenders to struggle to revive the GCC's lowest loan growth as central bank rules restrict lending to the government and put caps on personal and retail credit, Reuters has reported. "UAE banks were more exposed to non-performing debt than most of their GCC counterparts," said Liz Martins, senior economist at HSBC Holdings in Dubai. "They are still provisioning for this exposure, and remain highly risk averse." Banks are scaling back credit to government and quasi-sovereign clients to comply with central bank rules that limit their exposure to each at 100% of regulatory capital.

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    AMEinfo staff members report business news and views from across the Middle East and North Africa region, and analyse global events impacting the region today.

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