Lending restrictions expected to be eased in Abu Dhabi

ABU DHABI: Banks set to ease lending restrictions following recent injection of capital. (Getty Images)

The five largest banks in Abu Dhabi are expected to ease lending restrictions to investors starting this week, according to senior executives and financial analysts.

However, the rate of interest on loans is not expected to return anytime soon to levels prevailing before the global financial crisis broke.

Speaking to Emirates Business, Abdullah Saleh, General Manager, Operations, at National Bank of Abu Dhabi said liquidity in Abu Dhabi banks will largely improve, following the recent decision to pump 16 billion dirhams into National Bank of Abu Dhabi (NBAD), Abu Dhabi Commercial Bank, First Gulf Bank, Abu Dhabi Islamic Bank and Union National Bank.

Saleh told the newspaper that despite the fact the money was meant to support the five banks' capital, the banks will give loans to investors more freely than before, and Abu Dhabi's economic life will go back to normal.

He added that the liquidity problem will not fully be over but the new funds will enable banks to actively contribute in financing both new and pending projects, especially big ones. Each bank will use the funds in accordance with its credit policy.

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