U.A.E. Central Bank Requires Quarterly Provisioning

The United Arab Emirates’ central bank is seeking to improve transparency in the banking industry by requiring lenders to book provisions every three months instead of waiting until the end of the year to cover bad loans.

The new guidelines, which classify loans and provisions in line with the Basel Committee on Banking Supervision standards, will “serve as a catalyst in depicting a truly realistic financial position of banks and other financial institutions,” a statement on the central bank’s website said.