ABU DHABI (February 28, 2011): The United Arab Emirates central bank has introduced new rules to limit
loans to individuals and bank service charges in the Gulf Arab OPEC member, it said in a statement on
Sunday. The UAE monetary authority said earlier this month that it would come up with new regulations to
prevent banks in the world's third largest oil exporter from charging excessive fees.
The central bank has capped personal loans at 20 times the salary or the monthly income of a borrower with
a repayment period set at 48 months, the statement said.
Details about previous limits and bank charges were not provided.
The global credit crunch exposed borrowing excesses in the second largest Arab economy, where
expatriates and nationals alike enjoyed lavish lifestyles helped by easy credit during the oil-fuelled boom
years.
When Dubai's property bubble burst UAE banks were left with heavy exposure to the emirate's indebted
state-owned firms, dragging down the oil-reliant UAE economy.
Bankers said the new rules represented only broad guidelines and each bank would use its own discretion in
lending as well as for service charges.
