UAE central bank asks banks' views on interest rate proposal

Bank board reviews a proposal for amending interest rates and regarding provisions.
UAE central bank asks banks' views on interest rate proposal
By Ron Askew
Fri 22 May 2009 07:59 AM

The UAE central bank said on Thursday it has asked banks operating in the Gulf Arab state for feedback on a proposed change to interest rates and charges on personal loans.

"The board reviewed a proposal for amending interest rates and charges on personal loans in addition to charges and commissions charged against services rendered to individual customers, and the board decided to seek banks opinions on the system," statement said after the bank board met in Abu Dhabi.

The board also looked into a "proposal regarding provisions for loans, interest in suspense and investment provisions," it said, adding that it would also seek the opinion of the industry.

It did not give details about the proposed amendments.

The UAE lowered overnight repurchase rate by 50 basis points to one percent in January following a series of measures meant to shield the banking system and the economy from the crisis. (Reuters)

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