FINANCIAL NEWS

UAE banks own highest capital adequacy in Arab region

25 Oct 2011

(MENAFN) The Institute for International Finance (IIF) said that due to a stable increase in capital, UAE’s banks owned the highest capital adequacy in the Arab region, reported Emirates 24/7.

The IIF added that joint capital adequacy of the country’s banks last year stood at 20.8 percent, on the other hand, lending to the private sector stayed weak in the UAE compared to other Gulf nations, however, lending would be expected to recover through 2010-2012.

It also said that the highest provisions-to- non-performing loans (NPLs) ratio was recorded in Saudi at around 116 percent, followed by Oman at 104 percent, whereas in Qatar it stood at 95 percent and in the UAE it stood at 76 percent.

It is worth noting that high (NPLs) for a long period could suppress growth in the region since it discourages banks from recommencing normal lending.

More News

This website uses cookies to ensure you get the best experience and by clicking “I Accept” below, you consent to the use of cookies. Learn more