Wednesday, Apr 30, 2014

Dubai: The UAE Banks Federation (UBF), a professional representative body representing 49 member banks operating in the UAE has affirmed its support to credit bureau on Wednesday as some banks missed the April 30 deadline to submit their full credit data for the past two years.

UBF said it will convene an exceptional meeting of its Consumer Committee soon to discuss member banks’ cooperation with Al Etihad Credit Bureau. The credit bureau was one of the main discussion points during the last CEO Advisory Council meeting held on March 2014, and will again be on the agenda of the next Council meeting to be held in early May 2014.

The bureau on last Wednesday urged financial institutions operating in the UAE to furnish it with data about their customers in its push to commence operations. Although the bureau had earlier announced the launch in the first quarter of 2014 it missed the target and is facing the prospect of further delay as some banks are expected to face further delays in submitting the full credit data.

The Governing Council of Al Etihad Credit Bureau said last week that in spite of cooperation of banks to provide credit information of their customers; many of them did not provide full credit data.

Accuracy

Many banks Gulf News contacted this week said they are fully co-operating with the credit bureau for the transfer of accurate credit data. While updating of databases and achieving 100 per cent accuracy has taken more time than anticipated.

“The Federation strongly supports the creation of the Al Etihad Credit Bureau, and we are working closely with all Federation members to ensure that all member banks meet the requirements as stipulated by the Al Etihad Credit Bureau. Thus far all banks have been providing active support and participation for the various requirements such as securing IT connections with the bureau, submitting test data, and attending technical and other workshops. All banks have been working towards meeting the deadline for the last deliverable which is to submit 24 months’ historical data by 30th April,” said Abdul Aziz Al Ghurair, Chairman of the UAE Banks Federation.

The UBF or the credit bureau has not specified how many banks met the deadline as it expired.

Emirates NBD’s Group CEO Shayne Nelson said during a conference call following the bank’s 2014 first quarter result announcement that the bank has done all the necessary ground work to meet the data requirements of Al Etihad Credit Bureau.

Challenge

The Board of Directors of the credit bureau last week said the bureau is ready to start full operations once it received the data from banks and after the publication of regulations in the Official Gazette.

While most banks have done significant work towards meeting the deadline, some say, accuracy testing is becoming a challenge and they could miss the deadline by a few days to weeks.

“The establishment of a reliable credit bureau is a positive step for both banks and customers. It will enable banks to take well informed credit decisions. In the long run, it will improve portfolio quality for the banks and ensure responsible lending to customers by preventing them from getting into debt that they cannot afford. Overall it is expected to strengthen the economy and the banking system in the UAE,” said Al Ghurair.

By Babu Das Augustine Deputy Busines Editor

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