UAE Central Bank issues regulations remonitoring large exposure limits

Abu Dhabi: The Board of Directors of Central Bank of the UAE has set rules for the monitoring of credit exposure limits of banks operating in the UAE.

Exposures to banks operating outside the UAE, irrespective of their maturity, are not allowed to exceed 30 per cent of the bank’s capital base. The same applies to exposures of branches of foreign banks to their head offices and other branches abroad, as well as to foreign subsidiaries and affiliates of such head offices; this limit also applies to exposures of UAE incorporated banks vis-a-vis their foreign subsidiaries and affiliates.