Gulf lenders are among a group of international banks in the US that have protested against additional charges to be imposed on banks deemed too big to fail.
The charges are intended to prevent the world's major banks from repeating the mistakes of the global financial crisis.
The Institute of International Bankers, an association that represents lenders including Doha Bank, Arab Banking Corporation and Abu Dhabi International Bank, the American arm of National Bank of Abu Dhabi, has complained that higher capital buffers for big banks will reduce competition.
The Basel capital surcharge will "lead to unjustified competitive inequities between large banks" subject to the charge and others that are not, the group said in a draft letter obtained by Bloomberg News.
Capital surcharges agreed to by America's Federal Reserve and international regulators are "deeply flawed" and "reflexively based on the notion that size alone creates prudential concerns", the letter added.
But analysts said the banks' complaint was more likely a reflection of the anxieties of larger lenders, including Barclays, Credit Suisse and Deutsche Bank, over their ability to sustain profits as regulation tightened.
The Basel III rules, which were redrawn in the wake of the worst financial crisis since the Great Depression, are an attempt to prevent a repeat of the conditions that caused the collapse of Lehman Brothers and sent the global economy into a severe downturn.
Banks whose financial health is considered systemically important to the health of the wider financial system must hold a larger capital buffer of between 1 and 2.5 percentage points of common equity capital, with additional disincentives in place to discourage rapid expansion of balance sheets through acquisitions.
Banks will have until 2019 to fully comply with the new capital requirements. A list of the banks that will have to hold this additional reserve of capital has not yet been made available by the Financial Stability Board in Basel, but the full list is expected to be published by November.
It is likely to include lending giants operating in the Gulf including Deutsche Bank, BNP Paribas, HSBC and Barclays, according to research from Morgan Stanley.
Middle Eastern banks are expected to incur negative effects from the implementation of the Basel rules, particularly those in the UAE, Qatar and Lebanon given their capital structures, according to estimates from AlembicHC.
Among the UAE's lenders, Commercial Bank of Dubai is expected to be the best capitalised, followed by First Gulf Bank.
ghunter@thenational.ae
The specs
Engine: 1.5-litre 4-cylinder petrol
Power: 154bhp
Torque: 250Nm
Transmission: 7-speed automatic with 8-speed sports option
Price: From Dh79,600
On sale: Now
MEDIEVIL%20(1998)
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Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
COMPANY%20PROFILE
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Mina Cup winners
Under 12 – Minerva Academy
Under 14 – Unam Pumas
Under 16 – Fursan Hispania
Under 18 – Madenat
What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
SPECS
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Company%20Profile
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COMPANY%20PROFILE
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The specs
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
Blackpink World Tour [Born Pink] In Cinemas
Starring: Rose, Jisoo, Jennie, Lisa
Directors: Min Geun, Oh Yoon-Dong
Rating: 3/5
The%20Roundup
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The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
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TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
Auron Mein Kahan Dum Tha
Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar
Director: Neeraj Pandey
Rating: 2.5/5
Confirmed%20bouts%20(more%20to%20be%20added)
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COMPANY%20PROFILE
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Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
The%20specs%20
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FIXTURES
All times UAE ( 4 GMT)
Friday
Saint-Etienne v Montpellier (10.45pm)
Saturday
Monaco v Caen (7pm)
Amiens v Bordeaux (10pm)
Angers v Toulouse (10pm)
Metz v Dijon (10pm)
Nantes v Guingamp (10pm)
Rennes v Lille (10pm)
Sunday
Nice v Strasbourg (5pm)
Troyes v Lyon (7pm)
Marseille v Paris Saint-Germain (11pm)
Dirham Stretcher tips for having a baby in the UAE
Selma Abdelhamid, the group's moderator, offers her guide to guide the cost of having a young family:
• Buy second hand stuff
They grow so fast. Don't get a second hand car seat though, unless you 100 per cent know it's not expired and hasn't been in an accident.
• Get a health card and vaccinate your child for free at government health centres
Ms Ma says she discovered this after spending thousands on vaccinations at private clinics.
• Join mum and baby coffee mornings provided by clinics, babysitting companies or nurseries.
Before joining baby classes ask for a free trial session. This way you will know if it's for you or not. You'll be surprised how great some classes are and how bad others are.
• Once baby is ready for solids, cook at home
Take the food with you in reusable pouches or jars. You'll save a fortune and you'll know exactly what you're feeding your child.