UAE central bank asks local banks about exposure to Turkey

Turkish financial markets have been hit hard by a sliding lira exchange rate and rising yields

UAE Central Bank governor Sultan Bin Nasser Al Suwaidi.

UAE Central Bank governor Sultan Bin Nasser Al Suwaidi.

The central bank of the United Arab Emirates has asked commercial banks in the country to provide details of their financial exposure to Turkey by Tuesday, two bankers said on Monday.

In a brief circular, the central bank said its aim was to review and study local banks' exposure to Turkey, the bankers said, declining to be named because they were not authorised to speak publicly to media.

A central bank spokesman declined to comment. In the last couple of months, Turkish financial markets have been hit hard by a sliding lira exchange rate and rising yields.

The UAE's financial ties to Turkey have expanded in recent years. But UAE banks are very well capitalised by international standards - some have capital adequacy ratios near 20 percent of risk-weighted assets - so any trouble in Turkey appears unlikely to pose a major threat to them.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
A humbler Qatar still wants to punch above its weight

A humbler Qatar still wants to punch above its weight

Qatar has acquired more than $335bn worth of assets around the...

Saudi Arabia spends money to make money

Saudi Arabia spends money to make money

Tour of Asia by Saudi Arabia's King Salman advances drive to...

Soft money: will cash transactions soon be a thing of the past?

Soft money: will cash transactions soon be a thing of the past?

The rapid digitisation of banking in the UAE is enabling robots...

Most Discussed
sponsoredTracking