Today's The National quotes Hussain al Qemzi, the chief executive of the Dubai-based Noor Islamic Bank as saying that UAE banks need another AED20 billion (US$5.4 billion) to AED 25 billion (US$6.8 billion) to help shore up their financial positions. The Federal Government has already provided some AED 120 billion (US$32.7 billion). It's unclear if Mr. AlQemzi is calling for a capital (equity) injection or additional liquidity support.
To put his request in context according to the 31 December 2009 statistics published by the Central Bank of the UAE, total bank equity at year end (before current year profits) was some AED231.4 billion (US$63.1 billion). And monthly provisions are running just over twice the lower amount (AED 20 billion).
In a separate article the Governor of the Central Bank of the UAE was quoted as saying at the opening of Deutsche Bank's Branch in Abu Dhabi: "There is no need for more liquidity injections for the time being," Al Suwaidi told reporters.
Same market, two views.
It would be interesting to know what the basis for Mr. al Qemzi's view is. That is, how he got his precise figure.
Posts
No comments:
Post a Comment