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The United Arab Emirates’ central bank said on Thursday it had amended large exposure limit rules for commercial banks, introducing new caps for loans made to local governments and their entities.
The regulator set new limits of 100 percent of the capital base for all lending by a bank to governments of the seven-member UAE federation and their non-commercial entities, and 25 percent to individual borrowers.
It also adjusted a range of other percentage limits, including for commercial government-related entities, it said in a circular issued to banks on April 4 and visible on the central bank’s website on Thursday, Reuters reported.
