UK banks most exposed to Dubai: IMF
Kuala Lumpur, December 1, 2009
Banks from the UK have the most exposure to the debts of Dubai World, while Asia's banks have 'limited' exposure, Harm Zebregs, the International Monetary's Fund's Asia-Pacific representative, said.
'Given what we know, the exposure of Asian banks is limited with the most most exposure in UK banks,' Zebregs said on the sidelines of a business conference in the Malaysian capital.
Meanwhile, Malaysia's central bank chief said on Tuesday that Malaysian banks have limited exposure to Dubai and are unaffected by its debt restructuring.
"The Malaysian conventional and Islamic banks have limited exposure to Dubai and the recent development has not had an impact on their operations," Zeti Akhtar Aziz was quoted as saying by The Star newspaper.
"The fundamentals of the banking system remain strong and continue to support the economic recovery process," Aziz added.
Dubai rocked the financial world on November 25 when it said it would ask creditors of Dubai World, the conglomerate behind its rapid expansion, and Nakheel, builder of its palm-shaped islands, to agree to a standstill on billions of dollars of debt as a first step to restructuring. – Reuters