Text size:

  • Small
  • Normal
  • Large
Sultan Al Suwaidi, the UAE Central Bank Governor, addresses members at the FNC session.
Sultan Al Suwaidi, the UAE Central Bank Governor, addresses members at the FNC session.

Interest rates cap for bank loans being considered by FNC

Central Bank is to put FNC recommendations to lower interest rates to heads of UAE banks.

FNC members failed to agree on whether to recommend a 4 per cent cap on interest rates for bank loans.

Mohammed Al Qubaisi (Abu Dhabi) asked Sultan Al Suwaidi, the Governor of the UAE Central Bank, to find a way of capping all interest rates in the country's banks.

Mr Al Qubaisi said banks could afford to reduce their rates but chose not to: "Banks make a lot of profit from us locals."

Mr Al Suwaidi called on banks to charge more realistic interest, but said he could not interfere directly.

He said, however, that he would put any FNC recommendation to the heads of UAE banks, with whom he is soon to meet.

Mr Al Qubaisi suggested rates should be capped at 4 per cent but several members felt it was not that simple, suggesting the recommendation be reworded by the finance committee.

But Mr Al Qubaisi protested, as did Dr Amal Al Qubaisi (Abu Dhabi).

"All Emiratis are waiting for the work of the FNC," said Dr Al Qubaisi. "We told him [the Governor] we would issue a recommendation.

"We cannot push this to the end of the parliamentary break [in October]. Emiratis are waiting for this."

The council agreed to refer the issue to a temporary, four-member committee to come up with a recommendation for the next session.

osalem@thenational.ae

Back to the top

More articles


Editor's Picks

 An tenant in the Al Barsha area of Dubai has been sent a non-renewable contract by the landlord. Randi Sokoloff / The National

Dubai landlord refuses to pay back Rera fees after losing rent case

Keren Bobker helps a tenant who wants to know how to reclaim his RERA case fees and who has also been sent a contract with a “one-year nonrenewable” note.

 A Brabus Mercedes 6x6 Sports Utility Vehicle is readied for display during Auto China 2014 in Beijing, on April 20. Adrian Bradshaw / EPA

In pictures: Auto China 2014 exhibition

Leading automakers have gathered in Beijing for the kickoff of China’s biggest car show, but lacklustre growth and environmental restrictions in the world’s largest car market have thrown uncertainty into the mix. More than 1,100 vehicles are being showcased.

 A customer looks at a large mock-up of videogame console Game Boy.  Yoshikazu Tsuno / AFP Photo

Nintendo’s Game Boy at 25: hand-held legacy lives on

Nintendo’s trailblazing Game Boy marks its 25th anniversary Monday with the portable device’s legacy living on in cutting-edge smartphone games and among legions of nostalgic fans.

 Ashish Nehra of Chennai Super Kings bowls to Kings XI Punjab at Zayed Cricket Stadium in Abu Dhabi. Ravindranath K / The National

Hard-hitting Chennai not deterred by opening loss in IPL

But some questions remain about the team's attack ahead of Monday's match against Delhi Daredevils in Abu Dhabi, writes Osman Samiuddin.

 A projectionist takes a break in the projection room at Ariana Cinema in Kabul, Afghanistan. Going to the movies, once banned under the Taliban, has become a popular form of entertainment in Kabul, but women and children rarely take part. All photos by Photo by Jonathan Saruk / Reportage by Getty Images

Afghan cinema: Forbidden Reel

The lights go down and the projector whirls into action as Sher Mohammed, 35, begins his routine, bouncing back and forth between two projectors, winding reels, and adjusting the carbon arc lamps inside the projectors.

 Business class seats inside the Emirates Airbus A380. Chip East / Reuters

In it for the long haul: flying 16 hours with Emirates to LA

Our executive travel reviewer tries out the business class offering on Emirates' longest A380 route - and finds time passing quickly.

Events

To add your event to The National listings, click here

Get the most from The National