Liquidity crunch in UAE banking sector stabilising

The liquidity crunch in the United Arab Emirates banking sector is stabilising but the Gulf state’s central bank is ready to do more if needed, UAE Central Bank Governor Sultan Nasser ALl Suweidi said on Monday. « Things are getting better and stabilising, » Suweidi told reporters when asked whether the central bank had done enough to cushion the banking sector from the credit crisis. « If there is a need we will do more, » he said. Suweidi added that the second-largest Arab economy could face a real estate price correction. « A real estate correction could happen but UAE banks are well-cushioned and we could still go to lower levels, » he said. Agencies