UAE Central Bank to increase oversight on banks real estate exposures
21-Dec-2021
The UAE Central Bank on Monday said new enhanced supervisory rules will be implemented about banks' exposure to the real estate sector.
The new rules, which will come into effect from December 30, 2021, will cover all types of on-balance-sheet loans and investments, and all off-balance-sheet exposures to the real estate sector.
The rules further refine definitions, measurement and supervision to adopt the best practice in bank real estate financing and risk management.
The comprehensive standards require banks to review and improve their internal policies to enhance sound underwriting, valuation and general risk management for their real estate exposures.
The new methodology also introduces measurement of these exposures, based on credit risk-weighted assets using the Central Bank’s capital adequacy standards.
Source: khaleejtimes.com/business
