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FINANCIAL NEWS
UAE CB to assess retail lending regulations
22 Aug 2011
(MENAFN) UAE’s central bank’s supervision and examination department’s manager, Saleh Al-Tenaiji, said that at the beginning of 2012, the bank would start evaluating its rules regarding retail lending, reported Arabian Business.
Al-Tenaiji added that the bank would depend on feedback from banks and clients in order study them and to see whether to amend the rules or not as the country planned to restrain extreme bank charges on clients.
He also said that monthly payments for loans should not surpass 50 percent of the client’s salary and any normal income, including personal, car and housing loans in addition to credit cards.
It is worth noting that UAE’s central bank also restricted personal loans at 20 times a customer’s monthly salary, where repayment periods shouldn’t go above 48 months.
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