Despite the strong revival of the Dubai economy, local lenders lure customers and capital with a much more modest tone than before the crisis as they deal stricter financial regulation and consolidation.

Tighter regulations were implemented by the United Arab Emirates (UAE) central bank on lending. Since July 23 this year, the UAE central bank demands from local lender six more forms which have to be filled out if a customer applies for a personal loan, draft or auto loan in order to specify a customer’s credibility and securities in case of a default.

In addition, the central bank governor Sultan Al-Suwaidi pushes the banks to prepare for adapting Basel III standards by 2019. Al- Suwaidi demands from UAE lenders to have a minimum capital requirement of 12 per cent until then which is higher than the 8 per cent required by Basel III.

News: The Daily Sun/Bangladesh/8th-Dec-12