Banks may need to write-off more loans this year, a central bank official said on Tuesday, given the expected rise in non-performing loans.
On Monday, the UAE's central bank governor said he expected an increase in bad loans in 2010 to 6.4 percent, from 4.4 percent a year-ago.
Saeed Abdullah Al-Hamiz, senior executive director for banking supervision and examination at the central bank, said such a rise was to be expected in the wake of the global financial crisis.
"It is natural, it is not alarming. Because of the crisis there is a further deterioration in real estate and rents," he said.
When asked how banks would cope with the issue, he said: "They may have to write it off." (Reuters)For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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