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Bank stops lending to expat staff of real estate firms
by This email address is being protected from spam bots, you need Javascript enabled to view it on Thursday, 13 November 2008
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Results 1 to 11 of 11
Posted on Thursday, 20 November 2008
Emirates Bank decision
Posted by Greg at 07:30 UAE time
Today the Real Estate guys, tomorrow it could be any one of us. In reality no expat worker is really safe, even those in the banking sector who may be making these decisions.
As for me...I am going to invest in a bigger mattress to put my money under, just in case.
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Posted on Sunday, 16 November 2008
A tribute to a new advertising slogan
Posted by Doug at 09:22 UAE time
They said the the Gulf was immune from the recession.
We say: What next?
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Posted on Friday, 14 November 2008
Emirates Bank knows something more than we do...
Posted by Raj at 15:07 UAE time
Clearly Em Bank knows more than all know. Reading between the lines seems to confirm that R.E. Sector is gonna see worse days. Anyways i wish all best of luck.
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They have victimised the entire socitey/economy
Posted by Shilu at 14:20 UAE time
These banks, as many has commented, are the one who have created the problem the fine lady in this story is trying to solve by stopping granting loans to developers employees. At one point of time they were extending credit in all forms to employees and the only guarantee that they stay on their jobs/or find jobs fairly quickly if they are terminated as long as they stay in the country. There was no basic rational behind how sales department extended credit to people, have a salary transferred to a bank account with them and here you go... you have a loan that the majority will not be able to settle even if they work 3 jobs for the next 10 years....Even worst in many cases they accept that you have a valid employment contract and just give them checks... no need to transfer salary to them.
The whole process was something worst than the food chain in oceans ecosystem... The bank push their sales staff to sell more and more... low salaries and big theoretical sales commission.... the poor sales employee shift to what is called aggressive successful sales man (i.e. some one who doesn't follow any logic and doesn't apply any commercial common sense) and start selling right left center credit (which is funded by other poor employees savings), he/she start sending wrong signals from the field about the urgent need to react to competition and stimulate demand by loosening credit standards... he/she achieve his quota which is something like a moving goal post in these sales organizations.... greed.. then you have the poor guy who took the loan, he feels good for only short time when he has the money, satisfy the short need for consumption.. then the whole miserable feeling start kicking in with the first payment he/she has to made from a salary that is losing buying power every day...thanks to the real estate sky rocketing costs/prices which spread across the entire economy like fire spreading in dry leaves.... then you have those people who have their savings in the bank, no credit exposure or exposure that is below their savings/income who will suffer at one point of time.. until the central bank comes in and use the country cash reserves to save these banks who are unable to pay or collect money.... so other sectors in the country will suffer beyond what it already suffer....
These banks have victimized the entire society by committing mistakes deliberately in the first instance and now they are committing another mistake by sending wrong signals to market.... and here you go... who wins? The big fish who owns the majority of the bank and have a prime stock...because by now many of these big fishes already exited their investments and cashed in the money. Typical US scenario at a smaller scale.
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fair
Posted by Donald Duck at 12:04 UAE time
I think that's very fair for them, considering that their customers are being fired. But I wouldn't have exposed this decision to the public. If other banks started getting influenced by this; this will turn very chaotic
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Wot No Loan
Posted by Jack at 10:45 UAE time
Well...if other banks follow then the property market's in dire straights...along with about 80% of the people in the UAE I work in the construction industry, the developers mentioned are about to or have suspended a good number of their projects, the layoffs have started and there will be more...With no one hiring it looks like many of our colleagues will have to return home until the market balances itself out and liquidity returns. Who is going to rent all these empty units? I've seen this all before...twice, the moment has gone and it'll take time to recover, at least it'll get rid of the deadwood, the dodgy developers and the Hollywood factor...
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Laughable!!
Posted by SR at 08:22 UAE time
This is the most laughable, short sighted decision by a big league bank, to say the least!!! The decision itself and its execution is pathetic.
On one side, what is the use of this decision, almost all who wanted to take a loan were given loans as if selling bananas, without considering the repayment capacity, how much of loan committments they had etc. Even the basic banking principles were disregarded by the guys selling loans & credit cards. I can still remember, just 04 months back a loan sales person from a so called "biggest & most reputed"banks persuading me to take the loan, when I said that I did not have any use of it, the guy suggested to take the loan and buy another car (whilst I already had a car!!!).
On the other side, what a PR fiasco. How come they made this public, couldn't this have been done discreetly by way of a confidential memo to the relevant loan units?? I feel sorry for the employees of these real estate firms, overnight they are being treated like öutlaws!!!!
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Posted on Thursday, 13 November 2008
Emirates Bank
Posted by Louise Cooper at 21:59 UAE time
Scoop? What scoop? You posted it on Thursday evening on this website, but it was already in print in Express on the morning of the 13th, which meant that Express had it at least by a day before you did. No scoop here.
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banks not lending money to expats
Posted by JOSEPHAT at 21:19 UAE time
They are having knee jerk reactions.What they are trying to avoid [losing money] is what they will get.They can deny people loans but when the same people withdraw their money out of this banks,the banks will loose.
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Emirates bank
Posted by Joe at 16:07 UAE time
I went to the bank to withdraw my funds today, as did some others there working in the real estate sector. We had not been laid off, but if they want to treat us like this, we will take our money elsewhere, and never come back.
Hopefully there will be a run on the bank, like Northern Rock in the U.K. When that happened the bank was crippled. This comes from a knee jerk decision by someone not thinking about the effect on the Bank's share prices and reputation. I hope everyone withdraws
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Classic
Posted by E Marr at 15:32 UAE time
Nice scoop, Alex. Good work! The Dubai bubble is finally bursting.
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