Dubai’s government took control of Dubai Bank on Monday to prevent a collapse undermining the state’s banking sector. Dubai said it will inject an unspecified amount of capital into the bank and its takeover would protect depositors’ interests.
“In terms of credibility of the UAE banking system, it was very important that the bank did not default. A default by Dubai Bank would have raised worries about other local banks operating in the country,” Mohammed Yasin, chief investment officer at CAPM Investments in Abu Dhabi, said……………………………………….Full Article: Source