Monday, 1 December 2008

UAE banking sector

The UAE banking system is undergoing a period of stress. Many of the banks have been expanding rapidly, adding branches across the UAE. There has been a lot of product innovation and these products require an overhaul of existing IT systems at the same time as their in conversion to Basle II.

Other key metrics include:

1) Loan growth to stay below 10%,
2) Capital adequacy will have to grow to 11% in 2009 and 12% in 2010.
3) Significant wage inflation

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