Basel III
Basel III is an international banking regulatory framework setting capital adequacy, leverage, and liquidity standards that affect real estate lending availability and terms.
| Basel III Requirement | Impact on Real Estate |
| Higher capital ratios | Banks hold more capital against loans |
| Risk-weighted assets | Real estate loans require 35% to 100% risk weighting |
| Leverage ratio | Limits bank lending capacity |
| Liquidity coverage | Affects long-term mortgage availability |
| Countercyclical buffer | Restricts lending during booms |
| UAE Banking Context | Requirement |
| Central Bank implementation | Phased adoption since 2013 |
| Capital adequacy ratio | Minimum 13% (higher than Basel minimum) |
| LTV limits | 75% to 80% maximum for mortgages |
| Mortgage concentration limits | Maximum 20% of bank assets in mortgages |
| Effect on borrowers | Stricter approval, higher equity requirements |
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