UAE 'needs to inject $27bn into banks'
Dubai, February 10, 2009
The United Arab Emirates needs to inject more than 100 billion dirhams ($27.23 billion) into bank deposits to enable an adequate resumption of lending activity, Standard Chartered Bank said.
"We estimate that the UAE needs to inject in excess of 100 billin dirhams into the banking sector to bring the advances to deposit ratio below 100 percent," Standard Chartered said in a research note released on Monday.
Abu Dhabi said last week it would inject 16 billion dirhams into five of its banks.
The UAE finance ministry last year launched a 70 billion dirham emergency facility to improve liquidity in the banking system. The central bank also launched a 50 billion dirham facility.- Reuters