Banks in the United Arab Emirates may need to write-off more loans this year given the expected rise in non-performing loans, a central bank official said on Tuesday. 

On Monday, the United Arab Emirate's central bank governor said he expected an increase in bad loans in 2010 to 6.4 percent, from 4.4 percent a year ago.

Saeed Abdullah Al-Hamiz, senior executive director for banking supervision and examination at the central bank, said such a rise was to be expected in the wake of the global financial crisis.

'It is natural, it is not alarming. Because of the crisis there is a further deterioration in real estate and rents,' he said.

When asked how banks would cope with the issue, he said: 'They may have to write it off.' - Reuters