Pro­posed credit firm to sell data to UAE banks

The Pak Banker - - Company& -

DUBAI: UAE banks will have to buy in­for­ma­tion they need on the fi­nan­cial po­si­tion of bor­row­ers be­fore they em­bark on lend­ing when a land­mark credit data firm is launched, the cen­tral bank gover­nor was re­ported as say­ing.

Sul­tan bin Nas­sir Al Suwaidi said the planned Credit In­for­ma­tion Com­pany would pro­vide data on in­di­vid­ual bor­row­ers and lo­cal small firms seek­ing loans from the coun­try's 23 na­tional banks and 28 for­eign units.

In com­ments pub­lished in the semi of­fi­cial Ara­bic lan­guage daily Alit­ti­had, Suwaidi said such in­for­ma­tion would al­low the banks to ob­tain com­plete and ac­cu­rate data on any client be­fore they ap­prove any loan. "The credit in­for­ma­tion com­pany be­ing es­tab­lished will cover only in­di­vid­ual bor­row­ers and small firms seek­ing loans....banks wish­ing to get in­for­ma­tion about those bor­row­ers will have to buy data from the com­pany," he said.

"This of course will en­able banks to get full and ac­cu­rate in­for­ma­tion about the clients seek­ing loans as the in­for­ma­tion to be pro­vided by this com­pany will be com­pre­hen­sive...it will in­clude the size of the ex­ist­ing debt of the in­di­vid­ual or firm and their fi­nan­cial obli­ga­tions in­side the UAE, in­clud­ing those owed to na­tional es­tab­lish­ments such as Eti­salat and the elec­tric­ity and wa­ter firms."

Suwaidi said the cen­tral bank is co­or­di­nat­ing with the Min­istry of Fi­nance to de­vise the or­gan­i­sa­tional struc­ture of the planned credit com­pany, adding that the com­pany would be launched once it is ap­proved by the fed­eral cabi­net.

"As for the cen­tral bank, it is ready to im­me­di­ately sup­ply the technology and pro­grammes needed to op­er­ate this credit in­for­ma­tion sys­tem, which will con­sti­tute a com­pre­hen­sive credit in­for­ma­tion bank."

The Min­istry of Fi­nance said in mid 2010 it was con­duct­ing a study on the cre­ation of a credit in­for­ma­tion bureau in col­lab­o­ra­tion with the cen­tral bank. "Es­tab­lish­ing a fed­eral credit in­for­ma­tion cen­tre is a pos­i­tive step and will be a huge sup­port for len­ders, bor­row­ers and the macro-eco­nomic sta­bil­ity of the UAE. It will also en­able len­ders to gain a more com­pre­hen­sive view dur­ing their de­ci­sion-mak­ing," said You­nis Khouri, the Min­istry's Di­rec­tor Gen­eral.

Em­credit was ini­ti­ated by Dubai's Depart­ment of Eco­nomic Devel­op­ment in 2003 and is the first pri­vate and in­de­pen­dent credit in­for­ma­tion ser­vices com­pany in the coun­try. - PB News

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