The UAE Central Bank has issued changes in the reporting structure of the non-performing loans in its banking sector. The move is come to bring into line the methods with the global standards, in consonance with the International Monetary Fund (IMF). Under previous regulations, the NPL ratio was inflated when compared to several other jurisdictions. This was due to including the interest in suspense.

Subsequently, the new standard was implemented where the NPL ration was demarcated at 5.6%.

UAE Banking System

2014

2015

2016

2017

2018

2019

NPL Ratio (in %)

5.9

5.0

5.1

5.3

5.6

5.7

Interest in Suspense (in %)

1.5

1.3

1.4

1.5

1.6

1.6

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In order to increase transparency with several other jurisdictions, the Central Bank of UAE has also published the Net NPL ratio as under

UAE Banking System

2014

2015

2016

2017

2018

2019

Net NPL ratio (in %)

2

1.5

1.5

1.8

1.8

1.8

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