Just in:
Ingdan Announces 2023 Annual Results // Sunshine’s Debut Features Leave Tech World Scratching Its Head // Hong Kong Crypto Exchange Application Stalled by US Lawsuit // TUMI Hosts Global Launch Event in Singapore to Unveil Women’s Asra Collection and Announce Global Ambassador, Mun Ka Young // German Job Market Resilience Bodes Well for Economic Recovery // CABSAT 2024 Ushers in 30 Years of Media Innovation // Experience Ultimate Shopping Freedom at 4.4 Shopee Spree: Don’t Worry, Shop Shopee! // Emirati Aid Reaches Ukraine as Food Shortages Bite // Following the Money Trail: US and UK Investigate $20 Billion in USDT Transfers Tied to Sanctioned Russian Exchange // Digital Hub Unveiled: Xposure Launches Platform for Global Photography Community // Octa seeks to clarify Forex swap and swap-free accounts // Samsung Partners National Heritage Board to Bring a Slice of Singapore’s Cultural Heritage to Samsung The Frame TV // Infineon and HD Korea Shipbuilding & Offshore Engineering jointly develop ship electrification technology // US reiterates concern over Kejriwal arrest, Cong accounts // AIA Hong Kong Wins More Than 20 Accolades at MPF Ratings MPF Awards, BENCHMARK MPF of The Year Awards and Bloomberg Businessweek Top Fund Awards // No running of govt from jail, says Delhi Lt Governor // U.S. Compliance Takes Center Stage at OKX Following Industry Jitters // Universal Language for Healthcare: General Authority Embraces Global Coding System // French Leaders Gather for Interfaith Iftar Dinner // Hope for Respite as UAE Endorses UN Plea for Gaza Truce //
HomeFeatured BlogsDubai’s Borrowings from its Biggest Bank Surpass 100 Billion Dirhams

Dubai’s Borrowings from its Biggest Bank Surpass 100 Billion Dirhams

Emirates NBDs lending to the Dubai government has increased despite recent attempts by regulators to rein in local banks exposures.
Bloomberg News

The Dubai government has borrowed more than 100 billion U.A.E. dirhams ($27.24 billion) from Emirates NBD as of the end of the third quarter, according to the bank’s most recent financial statements, underscoring the extent to which the emirate has come to rely on its biggest lender for financing after the global recession.

Emirates NBD, which is majority-owned by the Dubai government through the Investment Corporation of Dubai, has long been disclosing the loans as a related-party transaction in its quarterly financial statements. They have almost tripled since the financial crisis set in at the end of 2008, when the bank reported AED34.8 billion on its books.

The sharp rise shows how Dubai’s government has leaned increasingly on Emirates NBD for financing since the crisis, when many global financial institutions packed up their bags and left amid concerns that the emirate and its over-leveraged companies were on the verge of a debt default. Today, Emirates NBD’s AED102.4 billion worth of loans to Dubai constitute nearly half of its AED213.7 billion of overall loans and receivables.

ADVERTISEMENT

Emirates NBD’s lending to the Dubai government has increased despite recent attempts by regulators to rein in local banks’ exposures. Dubai was one of the hardest-hit places in the world in the global recession, an experience that drove home the dangers of excessive leverage and led to hastily arranged bailouts from the central bank and neighboring Abu Dhabi.

The central bank responded by instituting a series of so-called large exposure limits, or guidelines that curtailed loans to single borrowers or groups of related borrowers to a maximum percentage of their capital. Banks resisted the rules, and called last year for at least five years to put them in place.

It’s not clear whether Emirates NBD is currently in compliance with the limits. A request for comment was not immediately returned.

This entry passed through the Full-Text RSS service – if this is your content and you’re reading it on someone else’s site, please read the FAQ at fivefilters.org/content-only/faq.php#publishers.

(via WSJ Blogs)

ADVERTISEMENT

ADVERTISEMENT
Just in:
CABSAT 2024 Ushers in 30 Years of Media Innovation // Experience Ultimate Shopping Freedom at 4.4 Shopee Spree: Don’t Worry, Shop Shopee! // Saudi Arabia Unveils Green Financing Tool to Achieve Net-Zero Goals // New Nylon Constant Torque Hinge From Southco Provides Position Control In A Compact Package // Digital Hub Unveiled: Xposure Launches Platform for Global Photography Community // First-Ever Fortune Innovation Forum Draws Top Global Leaders to Hong Kong, Promoting Agendas On Collective Cross-Sector Advancement // Emirati Aid Reaches Ukraine as Food Shortages Bite // Samsung Electronics Launches 2024 Neo QLED 8K, Neo QLED, and OLED Displays to Spark the AI Screen Era // German Job Market Resilience Bodes Well for Economic Recovery // TUMI Hosts Global Launch Event in Singapore to Unveil Women’s Asra Collection and Announce Global Ambassador, Mun Ka Young // Melco Style Presents “SANRIO CHARACTERS STUDIO CITY CARNIVAL” – Explore a SANRIO World of Unlimited Love and Cuteness // Hope for Respite as UAE Endorses UN Plea for Gaza Truce // Hong Kong Crypto Exchange Application Stalled by US Lawsuit // Global Audience to Witness Thrill of Dubai World Cup // Following the Money Trail: US and UK Investigate $20 Billion in USDT Transfers Tied to Sanctioned Russian Exchange // Sharjah Chamber Breaks Ground on Final Expansion with New HQ Pact // Andertoons by Mark Anderson for Thu, 28 Mar 2024 // Ingdan Announces 2023 Annual Results // Universal Language for Healthcare: General Authority Embraces Global Coding System // AIA Hong Kong Wins More Than 20 Accolades at MPF Ratings MPF Awards, BENCHMARK MPF of The Year Awards and Bloomberg Businessweek Top Fund Awards //