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The paper said representatives of seven key UAE banks attending the meeting presented proposals on services fees but they were not accepted by the central bank. It gave no details of those proposals. (FILE)
The central bank has rejected a request by banks to extend a May 1 deadline to enforce a new retail loan system but promised to consider their demands concerning services to major clients, press reports said Thursday.
The central bank conveyed its position during a meeting with the Emirates Bankers Association on Wednesday held to discuss the new regulations on personal loans and bank services fees, Alkhaleej Arabic language daily said.
“The central bank rejected a request to extend the deadline for the enforcement of the new personal loan rules and stuck to its May 1 deadline,” it said.
“But it promised to consider the banks’ request regarding fees on services extended by the banks to their major clients.”
The paper said representatives of seven key UAE banks attending the meeting presented proposals on services fees but they were not accepted by the central bank. It gave no details of those proposals.
In a statement last week, the central bank said the new retail loan system announced early this year would be enforced on May 1 after it was published in the official gazette.
The central bank said it had notified the country’s 23 national banks and 28 foreign units that the new system had been published in the official gazette on March 31, which means they must adhere to the new rules on May 1.
The new lending regulations capped personal loans at 20 times a borrower’s monthly salary and stipulated the loan must be repaid within 48 months.
The regulations cover all retail loans including personal, car, housing loans and credit credits. They are intended to control lending activity and excessive charges by banks following public complaints about a surge in bank fees.
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