UAE orders banks to report on Lehman exposure

18 September 2008
The Central Bank of the UAE has ordered all locally-licensed banks to report their exposure to US investment bank Lehman Brothers, which filed for bankruptcy protection on 15 September.

In a notice dated 16 September, Saeed Abdulla al Hamiz, senior executive director in the banking supervision examination department of the Central Bank, contacted all the country’s banks to request details of their exposure by 1pm on 18 September.

National Bank of Abu Dhabi (NBAD) has become the latest bank in the country to publically declare that it has no exposure to Lehman, or troubled US insurance company American International Group (AIG), except through a subsidiary of AIG in the UAE.

NBAD says this exposure is fully secured by commercial property, which is currently still generating income.

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