By: Amr Adel
Dubai-Mubasher: The UAE's banking sector is expected to see a growth of 3-4% in 2016, according to Abdul Aziz Al Ghurair, chairman of the UAE Banks Federation.
Lending rate is likely to rise by 2%, Al Ghurair noted, adding that there is a lower demand for loans.
Global and local economic slowdown pushes banking institutions to readjust their strategy and cut both costs and expenses, he explained on the sidelines of Family Business Council-Gulf Conference.
Banks will adopt a new policy for Eibor rates, the chairman noted.
UAE banks do not face liquidity challenges, Al Ghurair said, adding that their current liquidity levels are good.
He went on to say that UAE banks have taken the necessary steps, such as rescheduling plans, to ensure that the small and medium-sized enterprises (SMEs) sector will not default.
Translated by: Julian Nabil
