Dubai Islamic Bank considering raising fresh capital

DUBAI ISLAMIC BANK: Board may decide to raise fresh capital at March 25 meeting. (Getty Images)

Dubai Islamic Bank is reportedly considering raising fresh capital and converting emergency government deposits into regulatory capital.

In a statement on the bourse website, Tuesday, the bank's board of directors indicated it would discuss the two measures at a meeting on Wednesday.

The move comes as UAE banks increase capital and emergency reserves following a central bank directive aimed at bolstering the sector against the impact of the global financial crisis that forced heavy write downs in the region.

A spokesman for the bank was not immediately available for comment.

Rival banks in the UAE have already launched similar moves.

Abu Dhabi's Union National Bank said on Saturday it would convert 3.2 billion dirhams of state deposits, making it the latest to convert deposits from the government's 70 billion dirhams state facility into Tier 2 capital.

Other banks pursuing similar moves are top lenders National Bank of Abu Dhabi and Emirates NBD. (Reuters)

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