Think Abu Dhabi's recent injection of Dh16bn into five local banks was a staggering amount for what appeared to be a healthy sector? Not quite, opines Standard Chartered today. Key excerpt: In our view, the first and most important agenda priority for the UAE is to fix the liquidity problem so that the banks could start lending again. We estimate that the UAE needs to inject in excess of AED 100bn into the banking sector to bring the advances to deposit (a/d) ratio below 100%.
Granted, the report's authors are talking here about what needs to happen in the UAE, not just Abu Dhabi. Still, does this sound like a bit, uh, much?