ID :
115090
Mon, 04/05/2010 - 15:49
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https://oananews.org//node/115090
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Ministry of Finance studies a project to establish a Federal Credit Bureau
Abu Dhabi, April 5, 2010 (WAM)- Ministry of Finance (MoF) has initiated a study to create a Federal Credit Bureau that will be a centre for individual and corporate credit information services at the level of the United Arab Emirates government.
This move is based on the guidance of HH Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs and is another step in MoF's drive to promote transparency in financial policy-making.
A Federal corporation is being envisaged to provide comprehensive services and solutions related to credit information. It will be tasked with preparing reports, statements and credit ratings to help the financial institutions take appropriate lending decisions.
The Federal corporation for credit information will work to collect and document credit information from various financial authorities, companies, establishments, individuals and banks in the UAE, in addition to classifying and analysing them accurately. The corporation will prepare clear and precise reports and maintain databases with the maximum protection and safety with a view to assess repayment capabilities of current and potential creditors.
Commenting on this new initiative, HE Younis Haji Al Khoori, Director General of MoF said: "Establishing a Federal credit information centre is a positive step and will be a huge support for lenders, borrowers and the macroeconomic stability of the UAE. It will also enable public and private sector lenders to gain a clearer and more comprehensive view during their decision making on lending. It will help avoid risks that may result from their decisions."
The credit bureau is expected to have a positive implication on credit risk management. It will help lenders and clients obtain complete information and accurate and transparent data about the financial situation of the borrower and their payment behaviour. It will contribute positively by protecting lenders from some unforeseen exposure and risk resulting from non-essential operations and aid in reducing cost and time required for credit evaluation and decision-making. Most of all, it will positively impact small and medium enterprises, as it will increase development opportunities through non-risk funding based on their performance and fair value.
Establishing the company will have a positive impact on the UAE economy as it would enable supervisory authorities to obtain a precise vision for lending to individuals and institutions. They will be able to take suitable fiscal decisions and set policies for sustainable development with more confidence. It will also support lender plans to enter new markets by improving lending risk evaluation for new businesses. Furthermore, it will give a better impression of the financial sector and its performance.
Amongst other benefits, the credit bureau will help avoid inaccurate decisions or stave off corruption that may arise in borrowing requests. Based on safe technologies and best global standards, it will be able to build comprehensive UAE financial data that will be a reliable reference for all firms and individuals.
"Creating a federal credit bureau will be instrumental in developing healthy and viable credit markets and will enhance sustainable development in the United Arab Emirates," HE Al Khoori concluded.
This move is based on the guidance of HH Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs and is another step in MoF's drive to promote transparency in financial policy-making.
A Federal corporation is being envisaged to provide comprehensive services and solutions related to credit information. It will be tasked with preparing reports, statements and credit ratings to help the financial institutions take appropriate lending decisions.
The Federal corporation for credit information will work to collect and document credit information from various financial authorities, companies, establishments, individuals and banks in the UAE, in addition to classifying and analysing them accurately. The corporation will prepare clear and precise reports and maintain databases with the maximum protection and safety with a view to assess repayment capabilities of current and potential creditors.
Commenting on this new initiative, HE Younis Haji Al Khoori, Director General of MoF said: "Establishing a Federal credit information centre is a positive step and will be a huge support for lenders, borrowers and the macroeconomic stability of the UAE. It will also enable public and private sector lenders to gain a clearer and more comprehensive view during their decision making on lending. It will help avoid risks that may result from their decisions."
The credit bureau is expected to have a positive implication on credit risk management. It will help lenders and clients obtain complete information and accurate and transparent data about the financial situation of the borrower and their payment behaviour. It will contribute positively by protecting lenders from some unforeseen exposure and risk resulting from non-essential operations and aid in reducing cost and time required for credit evaluation and decision-making. Most of all, it will positively impact small and medium enterprises, as it will increase development opportunities through non-risk funding based on their performance and fair value.
Establishing the company will have a positive impact on the UAE economy as it would enable supervisory authorities to obtain a precise vision for lending to individuals and institutions. They will be able to take suitable fiscal decisions and set policies for sustainable development with more confidence. It will also support lender plans to enter new markets by improving lending risk evaluation for new businesses. Furthermore, it will give a better impression of the financial sector and its performance.
Amongst other benefits, the credit bureau will help avoid inaccurate decisions or stave off corruption that may arise in borrowing requests. Based on safe technologies and best global standards, it will be able to build comprehensive UAE financial data that will be a reliable reference for all firms and individuals.
"Creating a federal credit bureau will be instrumental in developing healthy and viable credit markets and will enhance sustainable development in the United Arab Emirates," HE Al Khoori concluded.
