UAE banks saw provisioning levels for non-performing loans rise 2.4 per cent to Dh34.4 billion ($9.37 billion) in March compared to the previous month reaching their highest level since at least December 2008, data showed.

UAE banks' problem debt provisions stood at $9.37 billion compared to $9.14 billion at the end of February, the central bank's UAE banking indicators showed.

The domestic banking sector has been grappling with the fallout of the global economic crisis and a local property market downturn, as well as the restructuring of Dubai's flagship conglomerate Dubai World.

The banks' combined loans climbed to Dh1022 billion at the end of March, from Dh1017.5 billion in February. Bank deposits rose to Dh967 billion from Dh958.3 billion at the end of the previous month.-Reuters