Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

UAE - Q1 launch for Credit Bureau  Join our daily free Newsletter

MENAFN - Khaleej Times - 08/01/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) Lenders would now have a complete credit history of their potential borrowers before them as the Al Etihad Credit Bureau is ready to go into operations within this quarter



The bureau, a federal government company which will provide UAE-based credit reports and other financial information, is expected to complete all necessary procedures by the end of this month



"The pilot phase of testing has been considered successful and we are now in the last stage of finalising the remaining agreements needed with our industry partners and testing the world-class technology that will facilitate the data transfer," Marwan Ahmad Lutfi, chief executive of Al Etihad Credit Bureau, said in a statement to Khaleej Times







According to the statement, the bureau has approached all UAE-based banks to sign agreements and provide credit information via a process that will be completed by the end of January. "As soon as this has been achieved, along with receiving formal approval of the bureau's regulations and credit report charges from the UAE Cabinet, the Al Etihad Credit Bureau will commence operations," Lutfi added



The financial industry, which faced the brunt of the 2008 global financial meltdown when they wrote off billions of dirham in credit defaults in the subsequent five years, has welcomed the bureau



"Now, we can carry out our due diligence on an individual customer with the help of data gathered by the Al Etihad Credit Bureau," said a senior banker in Abu Dhabi. He said it will improve the quality of "our credit and portfolio"



Some insider say initially the bureau may not be able to end the tradition of Wasata, or reference, as a factor in obtaining personal credits in banks where it was popular earlier



Over 15 years ago, a businessman grabbed headlines when he escaped after borrowing hundreds of millions of dirham from national and multinational banks. After that incident, the Central Bank of the UAE set up an informal Risk Bureau on corporate borrowers, which provided information to banks



The new company will provide critical information on individual's borrowing and its credit worthiness, allowing the bank to decide on his loan request, with a treasure trove of data to analyse his loan-paying capacity



The bureau will open opportunities for retailers to offer products in the future to customers with good credit history, on installments. According to an estimate, the borrowing costs are likely to fall by 30 per cent when the bureau will start its operations



The bureau is currently finalising the installation of an electronic link with banks and financial institutions operating in the UAE in order to create a comprehensive database of individuals' and businesses' credit information



Lutfi said that effectively run credit bureaus are internationally proven to support responsible lending, enhance payment behaviour and reduce credit losses from bad or non-performing debts



"The credit bureau is currently completing the final steps of its pre-operational phase, which includes all financial institutions testing their data validity and accuracy in order for credit reports to be provided in a virtual based technique, along with training users on establishing internal roll-out plans for their operations and preparing to receive credit reports and the finalisation of agreements between partners and the bureau to provide credit information.



During initial testing, a number of financial institutions were able to provide more than 90 per cent accuracy and consistency in the submission of credit information, according to the Al Etihad Credit Bureau statement



The first private credit information company in the UAE, Emcredit, according to its website, has collected 5.6 million individual identification records. It has 30 per cent of the UAE's mortgage data and 200,000 trade licence records. The credit information company shares its data with seven key government data sources


 


Khaleej Times




  MENA News Headlines
 Mar 31 2015 - Gcc Banks Continue Double-Digit Growth Momentum: Bcg StudyMuscat Daily
(MENAFN - Muscat Daily) According to a new study by The Boston Consulting Group (BCG), the banking industry in the Middle East maintained double-digit revenue growth in 2014 with a ten per cent ...

 Mar 31 2015 - 12 Consortia Seek To Pre-Qualify For Sultanate's Biggest Water ProjectMuscat Daily
(MENAFN - Muscat Daily) As many as 12 consortia are seeking to pre-qualify to participate in the main contract tender to develop Oman's largest independent water project (IWP) in Barka and Sohar. The ...

 Mar 31 2015 - Two Indian Planes On Standby In Muscat For Yemen EvacuationMuscat Daily
(MENAFN - Muscat Daily) Two Airbus 320 aircraft sent by the Indian government to rescue its nationals from Yemen were forced to wait at the Muscat International Airport on Monday after authorities in ...

 Mar 31 2015 - Kerry Says Working Into The Night On 'Tricky' Iran IssuesMuscat Daily
(MENAFN - Muscat Daily) US Secretary of State John Kerry said Monday he and his global counterparts were going to work deep into the night seeking to resolve the remaining "tricky issues" as a ...

 Mar 31 2015 - Grateful Singapore Gives Lee Kuan Yew A Hero's FuneralMuscat Daily
(MENAFN - Muscat Daily) More than 100,000 people lined Singapore's streets to bid farewell to its founding father Lee Kuan Yew on Sunday, officials said as a week of mourning ended in the city-state ...

 Mar 31 2015 - Hunt Resumes For Alps Plane Crash Dna, Black BoxMuscat Daily
(MENAFN - Muscat Daily) Investigators sifting through the wreckage of the doomed Germanwings plane in the French Alps were forced Monday to resume the hunt on foot as bad weather hampered helicopter ...

 Mar 31 2015 - 'Stark Choice' In Uk Election, Cameron Warns As Campaign BeginsMuscat Daily
(MENAFN - Muscat Daily) British Prime Minister David Cameron warned voters they faced a "stark choice" in May's tight election as he kicked off campaigning Monday after a ceremonial visit to Queen ...

 Mar 31 2015 - Another Blogger Hacked To Death In BangladeshMuscat Daily
(MENAFN - Muscat Daily) A Bangladeshi blogger was hacked to death in Dhaka on Monday.Three knife-wielding attackers set upon 27 year old Washiqur Rahman near his home on Monday morning, weeks after ...

 Mar 31 2015 - Kuwait to invest USD2b in culture, tourism sectorsMENAFN
(MENAFN) The Kuwaiti government plans to invest USD2 billion in cultural and tourism sectors in hopes of attracting one million tourists in 2015, according to government's statements, Saudi Gazette ...

 Mar 31 2015 - Venus Williams Upsets Wozniacki In MiamiMuscat Daily
(MENAFN - Muscat Daily) Venus Williams booked the first women's quarter-final spot at the ATP and WTA tournament in Miami on Monday as she beat fourth seed Caroline Wozniacki 6-3, 7-6 (7-1).The ...

more...


 






Google

Click to Apply

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help