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| Federal government would put up 100 per cent of the proposed Emirates Development Bank's Dh5 billion paid-up capital |
The Federal National Council (FNC) freezes approval of a proposed merger of the Emirates Industrial Bank and the Real Estate Bank, citing the need for further study by the council's specialised committee. This stalemate would push the formation of the new financial institution, approved by the Cabinet, to at least November, when the council reconvenes after the annual break.
The federal government would put up 100 per cent of the proposed Emirates Development Bank's Dh5 billion paid-up capital. The bank's authorized capital is Dh10 billion. The proposed law allows the bank to establish branches inside and outside the UAE, engage in retail and commercial banking activities and buy non-performing loans from other institutions not to exceed 25 per cent of its paid-up capital.
The bank is intended to provide funding for industrial, agricultural, and real estate projects in addition to retail mortgage financing.
