By Soren Billing
Loan growth so farthis year this year in line with central bank's 10% target.
The UAE central bank has said that loan growth in the year to date has been in line with its 10 percent target, and that it will continue to monitor liquidity and asset quality this year and in 2010.
“It is reassuring to see that UAE banks have become more cautious and that the loan growth for this year is, so far on an annual basis, close to the 10 percent central bank target,” Saeed Abdullah Al Hamiz, a senior executive director of the central bank’s Banking Supervision and Examination department, told a meeting at the Swiss embassy, according to state news agency WAM.
Liquidity and assets quality will be the focus of the UAE monetary and financial authorities for the rest of the year and in 2010.
The amount of funding provided by international lenders continues to decline as medium term notes and commercial paper programmes are renewed at higher prices, or not at all, Al Hamiz said.
“We expect this overseas funding to eventually stabilise when the world economy picks up during the second half of this year.
“In assets quality we are monitoring the real estate sector and its effect on the financial industry. The other sectors that we are also monitoring are the personal consumers segment and small and medium sized enterprises.”
UAE government and central bank measures to ease tight liquidity and boost investor confidence have been successful, he said.
This is borne out by falling EBOR rates, growing deposit bases and high capital adequacy ratios at the nation’s banks, he added.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.