March 12, 2019 / 5:54 AM / 5 months ago

UAE banks' loan losses to rise in 12-18 months - Moody's

DUBAI, March 12 (Reuters) - Banks in the United Arab Emirates are expected to experience a rise in loan losses over the next 12 to 18 months as the decline in real estate prices and rising interest rates reduce cash flow of borrowers, Moody’s said on Tuesday.

“Increased lending to the sector ... has coincided with a decline in real estate prices owing to high supply and weak demand,” said the rating agency in a statement.

However, tighter regulation on exposure to real estates will help moderate risks, and UAE banks have “good absorption buffers”, Moody’s added.

Reporting by Davide Barbuscia, Editing by Sherry Jacob-Phillips

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