UAE banks are not suffering from any systemic risk following the recent crash of local and regional finance markets. However, there is a growing need to manage the domestic liquidity that could result in asset bubbles, according to Fitch Ratings.
Speaking at Middle East Credit Outlook for 2006 Seminar in Dubai yesterday, Richard Fox, Senior Director, Sovereign Group, said the impact of negative wealth effect would be reflected on both consumer confidence and private sector's business confidence. According to him, the banks' credit exposure to the private sector in the UAE and the region are on the rise.
