Meow

http://www.thenational.ae/thenationa...o-protect#full

NorthernLad

Interesting....

http://www.thenational.ae/thenationa...#ixzz2GqPSbSIK

Meow

Seems the central bank has backtracked

According to an article published by Zawya issued today taken from Reuters:

“The United Arab Emirates central bank will not impose limits on mortgage lending without consulting commercial banks, and any new rules are not imminent, central bank governor Sultan Nasser al-Suweidi was quoted by a local newspaper as saying….
….But Suweidi was quoted as saying by Al Ittihad newspaper on Monday that there had been a “misunderstanding” in the media and that no central bank ruling had been issued, only a warning to banks to be prepared for rule changes in the future.”

This is rather strange as the notice that was issued to all banks and after it has set out the revised loan to value limits, it clearly states that “all banks and finance companies are required to comply with this notice”.


Hmmmm...

http://www.zawya.com/story/UAE_cbank...emailmarketing

Miss Anne Thrope

Quelle surprise! The usual one-step-forwards, two-steps-back policy making shuffle here.

You stupid people: no we did not tell you it was blue. You should have realised that when we said it was blue we obviously meant it was green. Until such future point when, of course, we will declare it yellow. Meaning it's red. For now. Probably.

I suppose in its own publicly clumsy way, its not that different than the process for making laws (and sausages) to which we are more accustomed.

mikewot

http://www.arabianbusiness.com/uae-c...or-486593.html

But Suweidi was quoted as saying by Al Ittihad newspaper on Monday that there had been a "misunderstanding" in the media and that no central bank ruling had been issued, only a warning to banks to be prepared for rule changes in the future.

Meow

See The Dean's initial post in this thread, which included the notice from the Central Bank.

Miss Anne Thrope

You stupid people: no we did not tell you it was blue. You should have realised that when we said it was blue we obviously meant it was green. Until such future point when, of course, we will declare it yellow. Meaning it's red. For now. Probably.

The Dean

..... and there has been NO CIRCULAR this time - at all.......... that press report is strange..........

Millhouse

Of course, you could argue that their first notice was a bad decision. The role of a central bank is to regulate. It is not to determine the credit worthiness of the borrower. It should trust the banks' (that it regulates) risks departments.... i.e the Dean.

The Dean

Statement from the economists at ENBD this morning (my bold emphasis):

"UAE central bank governor Suwaidi said yesterday that the central bank had not asked banks to enforce new loan-to-value caps on mortgages, but had only issued an alert saying that the central bank is planning new mortgage rules to cap loans, to allow banks to prepare for the changes. The governor’s comments were reported in Al Ittihad, and picked up by other news agencies. At the end of last year, it was believed that the central bank had capped mortgages to expatriates at 50% of the property value, and at 70% for UAE nationals."

Circular issued by Central Bank on 31 December:

shiva

yah, yanni, you know what we meant yanni.