UAE central bank may exempt bonds from new loans cap


12/06/2012 08:30 AST  Reuters

The United Arab Emirates' central bank has told banks they may be allowed to exclude bonds issued by state-linked entities from planned lending limits slated to take effect later this year, a local newspaper said on Monday, citing bankers.

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.

The ruling would cap lending at 100 percent of a bank's capital base to governments of the seven-member UAE federation and their non-commercial entities, and 25 percent to individual borrowers.

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