UAE bank studying new rules for bank lending against shares
The United Arab Emirates central bank is looking at proposals for new rules covering bank loans against shares, a senior official said on Tuesday. "The central bank board is studying new regulations for credit against shares," Saif al-Shamsi, assistant governor for monetary policy and financial stability, told reporters on the sidelines of a financial conference.
Copyright Reuters, 2014
He did not elaborate. In July, the Securities and Commodities Authority met with the central bank, the economy ministry and the Dubai and Abu Dhabi stock exchanges to discuss tightening supervision of the bourses.
This followed wild swings in the shares of Arabtec, then the Dubai market's most heavily traded stock, which more than tripled to levels far above fair value estimates and then lost more than two-thirds of their value, dragging down the entire market.