DUBAI, 18 February 2007 — Eleven national banks in the UAE have violated central bank regulations with respect to investments ratio in shareholders’ equity amounting to 25 percent, banking sources disclosed yesterday.
These included four banks from Abu Dhabi, six banks from Dubai and one bank from Sharjah. The sources said violation percentage of the 11 national banks ranged between 37 percent and 294 percent, noting that some banks issued bonds that can be converted into shares to reduce the percentage to the allowed limit. The sources urged the central bank to introduce new legislation and regulations to keep pace with the prevailing investment requirements.