The Central Bank considers that the granting of credit is, generally, the core area of banking business and, therefore, the board of directors or a similar designated body and the management of banks operating in the UAE are responsible for their bank's credit policy.

Consequently, the Central Bank directs banks to formulate general credit policy instructions aimed at ensuring a prudent lending structure. Each bank's board of directors, or a similar designated body, has to approve and to implement these instructions in a way that allows for proper monitoring of all exposures.

Moreover, the Central Bank requires that a proper credit evaluation with relevant documentation will be undertaken prior to granting any credit facility.

With regard to the specific risk arising from exposures to individual countries, banks are requested to apply an extremely prudent policy when fixing country limits. The Central Bank recommends thatbanks should refer to internationally renowned credit rating agencies.