Many UAE banks have not fully disclosed losses|
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UAE. A survey of bankers reported today by Emirates Business reveals that a majority of them believe that many UAE banks have not fully disclosed their losses.
Some 35% of the bankers polled believe that up to 25% of the banks in the country may still be hiding their losses while another 20% said that between 25% and 50% of the banks may be doing so.
Despite losses, all bankers surveyed believe that the industry remains strong despite the crisis. Fully 100% of the polled bankers said "yes", when asked if the banking industry is strong.
Bankers also expect to witness an increase in defaults. A top official of a large local bank based in Abu Dhabi said that while non-performing loans (NPLs) as a percentage of the sector's loanbook are very low at present, the risk of NPLs rising is significant.
Fully 85% of respondents expect an increase in loan defaults in the second half of the year.
Other indicators from the survey showed that half of bankers expect interest rates to come down in the second half of this year. And 85% expect mergers and acquisitions will make a comeback to the sector.


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