HSBC Middle East has slashed credit card limits by up to 40 percent, tightening lending further as the liquidity crunch deepens in the UAE.
The bank confirmed to Arabian Business on Wednesday it had been revising credit limits for two to three months because of market conditions but it appears that the number and type of customers affected is widening to people with perfect credit records.
“HSBC reviews its customers card usage payment patterns and associated risks as an ongoing practice and in line with market conditions.
“Based on this information credit limits are adjusted upwards and downwards. These changes are the natural course of our credit card business and as a responsible lender these are done to ensure customers enjoy the financial flexibility they desire and are in a position to repay their debts,” Thimal Perera, the HSBC regional head of credit cards said in a statement.
One HSBC customer told Arabian Business he had received a text from the bank informing him his credit limit would be lowered by up to 40 percent.
Banks in the UAE are increasingly worried about customers unable to repay debt as job losses mount in the emirate.
Arabian Business reported in November that HSBC had doubled the minimum salary someone must earn to qualify for a personal loan from AED10,000 to AED20,000.
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