Lenders seeking more time to comply with limits on their exposure to government firms
Banks in the UAE have asked for five years to comply with new regulations from the central bank that would restrict how much exposure they can have to the government and government-related entities.
Last year, the Central Bank of the UAE introduced regulations that would cap government-related exposure at 100 per cent of a banks capital.
The UAE Banks Federation, an industry association, also asked for bond and sukuk to be excluded from their exposures.
The new regulation was set to be introduced in September 2012, but was put off at the request of local banks. Under the original measures outlined by the central bank, two of the countrys largest lenders, National Bank of Abu Dhabi and Emirates NBD, would have been in breach of the limits.
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