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
 Aug 4 2015 - UAE Q3 non-oil sector keeps growing baseMENAFN
(MENAFN) An official report show that Business conditions in the UAE's non-oil private sector continued to improve in last July.Non-oil private sector employment in the UAE keeps on increasing in ...

 Aug 4 2015 - Emirates Reit to invest USD56.69m in Akoya new schoolMENAFN
(MENAFN) Dubai-based real estate investment trust Emirates Reit has announced that it will invest about USD56.69 million on building a new school in DAMAC's Akoya development. Emirates Reit acquired ...

 Aug 4 2015 - Egypt expands armed forces mission in YemenDaily News Egypt
(MENAFN - Daily News Egypt) President Abdel Fattah Al-Sisi met Saturday with members of the National Defence Council, in a meeting that saw the expansion of the Egyptian armed forces' participation ...

 Aug 4 2015 - Egypt- None can interfere in judiciary, Brotherhood defendants tried by law: Al-ZindDaily News Egypt
(MENAFN - Daily News Egypt) Minister of Justice Ahmed El-Zind said that defendants of the former Muslim Brotherhood regime are being tried according to the law, during a Friday TV show on a state-run ...

 Aug 4 2015 - Oman approves electricity projects worth USD600.2mMENAFN
(MENAFN) Three hundred fifty-nine projects with a total value of around USD600.2 million were approved by licensed operators last year to enhance the electricity network in Oman.The projects were ...

 Aug 4 2015 - Industries Qatar profits surge 20 percent in Q2MENAFN
(MENAFN) Industries Qatar said its second-quarter profit increased 20 percent, beating analyst forecasts, although its half-year profit fell because of declining petrochemicals prices.The ...

 Aug 4 2015 - Health Ministry's Hajj Preparatory Committees hold meetingSaudi Press Agency
(MENAFN - Saudi Press Agency) The Preparatory Hajj Committees of the Ministry of Health held their 12th meeting at the ministry yesterday, in the presence of the heads of the preparatory committees ...

 Aug 4 2015 - Kingdom of Saudi Arabia's Scouts honor World Scout Committee MembersSaudi Press Agency
(MENAFN - Saudi Press Agency) Saudi Arabian Boy Scouts Association honored the members of the World Scout Committee during their visit yesterday to the Saudi delegation participating in Arab Cultural ...

 Aug 4 2015 - Kingdom of Saudi Arabia's Consul General in Los Angeles : We did not record any contact from citizens due to fires in Northern CaliforniaSaudi Press Agency
(MENAFN - Saudi Press Agency) The Consul General of the Kingdom of Saudi Arabia in Los Angeles, Ambassador Dr. Faisal bin Abdulaziz Al-Sudairy, confirmed that there is no Saudi citizen close to the ...

 Aug 4 2015 - UAE- Apparel unveils community centre in AjmanKhaleej Times
(MENAFN - Khaleej Times)Apparel Group has launched its first community centre in the UAE - Grand Centrale in Ajman. His Highness Shaikh Humaid bin Rashid Al Nuaimi Member of the Supreme Council and ...

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