Emirates NBD dropped 4.8 percent and Dubai Islamic Bank slipped 0.5 percent. Abu Dhabi Commercial Bank fell 1.4 percent.
The impact of the provisions are expected to be seen on the fourth-quarter results.
Dubai's index fell 1 percent to 1,603 points, touching its lowest level since Sept. 7.
In Abu Dhabi, Aldar Properties declined to a near four-week low with no word on an expected government support package for the indebted developer.
The Abu Dhabi index slipped 0.4 percent to 2,694 points.
Other regional markets were mixed, as investors stayed on the sidelines due to lack of catalysts to move the market.
"Despite the low volumes, the forecast for the (Gulf) as a whole looks positive especially for foreign investment," said Hesham Tuffaha, head of research at Bakheet Investment Group in Saudi Arabia.
Qatar's index gave up gains from a Sunday's advances, slipping 0.2 percent to 8,721 points, as investors booked profits.
Industries Qatar (IQ) dropped 3.2 percent after reaching a closing high of at least two years on the previous day.
Kuwaiti telecom firm Zain advanced 1.3 percent. Last week, a Kuwaiti court dismissed a lawsuit from a Zain shareholder unhappy with a $12 billion bid for a stake in the firm, clearing one key hurdle for buyer Etisalat. The index gained 0.2 percent to 6,919 points.
In Saudi Arabia, the Tadawul All-Share Index (TASI) dropped 0.45 percent to 6,581.74 points. The sector activity for the day was all negative except 2 gaining sectors. The losing sectors ranged from 0.32 percent by the Retail sector to 3.09 percent by the Cement sector. On the other hand the gaining sectors were the Banks & Financial Services with gain of 0.43 percent and the Telecommunication & Information Technology sector with gain of 0.48 percent. The overall market breadth for the day was negative with 19 advancers against 111 decliners giving it an AD ratio of 0.17, the Financial Transaction House (FTH) said in its daily market commentary.
The stock market turnover reached SR3.24 billion on Monday.
The Bahraini index fell 0.1 percent to 1,426 points.
— With input from agencies
