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Senior business figure's stark warning over lending
by This email address is being protected from spam bots, you need Javascript enabled to view it on Wednesday, 29 April 2009
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Results 1 to 11 of 11
Posted on Friday, 1 May 2009
Move forward – The key message
Posted by Tristan de Ferluc at 12:17 UAE time
I remember reading “In search of excellence” written by Tom Peters some 25 years ago. In this excellent book, he was telling us a short story about Tom Watson, a former MD or President of IBM who hired a brilliant young treasurer. This young gentleman lost $10m (a fortune at that time) and went to Tom Watson’s office to resign. As he was not in his office, he left his resignation letter on his desk. When Tom Watson came back and found the letter he walked to the gentleman’ office and asked him : what is it ? The young man answered it was his resignation letter as there was no other possible attitude after the loss he made. And Tom Watson replied he would never let him go to competition after spending $10m on his training !
Why am I writing this ?
It highlights both the essence of management and the positive mind that drive outstanding people : the ability to analyze quickly, transparently, the ability to decide quickly, the ability to move forward and capitalize on experience.
No one can be expected to be the best 100% of the time whether people or countries. Only bad or jealous people spend time criticizing. Everyone know failures, whether small or big but most of all, the most important is what these persons do to capitalize on their experiences and change the present and the future. There is no space for shame and issues should be addressed openly with the right people to analyze the problems, design solutions and implement.
Definitely, being transparent and moving forward is a winning attitude.
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Posted on Wednesday, 29 April 2009
Its not the banks
Posted by Tariq at 00:45 UAE time
I disagree with the statement made above in this article made by Mr. Kanoo. Its a global economic slowdown and Dubai is the minute part of the whole situation. If Dubai economy gets better by any means it can never effect globally but if the global situation remains same then Dubai will get worse. US banks needs to pump in money in the US market where it starts recovering from where it started to go down and US president needs to bail out as much companies as possible to start the business. Unfortunately we are all dependant on the other markets
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BANK LENDING
Posted by RAMA at 18:19 UAE time
I AM WITH THE OPINION THAT UAE SHOULD AT LEAST HAVE FEW BANKS OWNED BY THE GOVERNMENT WITH SUBSIDISED LENDING RATES WITH A VIEW TO HELP ALL SECTORS OF ECONOMY GROW EQUALLY ON A REALISTIC BASIS. THIS IN TURN WOULD HELP CONSUMER PRICES CHEAPER AND A COMPETITION FOR OTHER BANKS WHO CHARGE EXORBITANT WITHOUT MERCY
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declare any losses
Posted by vidiyala Rao at 17:47 UAE time
Mr.Mishal Kanoo, you are one of the true business leader, I fully support your view, but which banks do declare the bad debts, if they
declare what will happen the heavy bonuses the top management gets. practically the banks dont declare losses unless they bocome bankrupt.In this situation the business leaders like you should not remove any staff and should come up with some innovative business models.
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bank lending and economy picking up
Posted by julia at 16:58 UAE time
best way to boost economy is to increase purchasing power of
employees.
i suggest all employers increase saalry by 20%.
and dubai govt may take a lead this.
this alone will prompt shopping spree and boost confidence
and econmy will start rolling all over again
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A give and take ..
Posted by Hossam at 16:30 UAE time
Mr.Kanoo , if the banks will start lending money to businesses then you should decrease your selling prices as well because I don't think the banks will be able to lend every consumer trying to buy your prodcuts for example or for any other businesses ... so it's a give and take or call it take and give ...one cycle .
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Frustration........
Posted by Nafis at 15:15 UAE time
Can anyone asks these super business houses, what they did of the benefits reaped during these years...simply diversion of profits, no retention in the business...diversion either in non liquid assets or speculation....where they lost. These business houses have made the habits of making money from someone's else funds. Why the gentleman is advising rather forcing banks to start lending again? why he is not injecting his own surplus funds which has been diverted? Someone should guide him properly of the lending and borrowing principles. He is suggesting banks to lend more money to the business, advise me from where, how these banks will maintain ratios or leave all regulatory norms to make the situation worsen further.
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Lending...
Posted by Confused Chappy at 13:58 UAE time
Can some top business bring out a statement about developers and other companies paying there bills to suppliers also, as this is crippling us too. Companies should be named and shamed on not paying there bills....
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where is the end buyer?
Posted by Rajesh at 12:53 UAE time
I am a businessman , and even if the banks starts lending me , It will not lend the money for free , It will charge interest of course , and i have to pay the installments ,but what is the use of the borrowed money when my products sales are down by 85 percent due to the crisis . Is it worth borrowing and paying interest at this time or is it better to sit down quietly for some time ???
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differentiation
Posted by paul at 11:53 UAE time
I agree with Mr Kanoo, although I would add that it is important that banks can distinguish between good lending and bad lending.
Lending on property was what created this problem, so banks are right to be cautious about that now, especially as prices are likely to fall further and the borrowers may lose their jobs.
But it should be a priority to ensure that viable businesses that need borrowing for cashflow still have access to those funds. It would be terrible for the economy if profit-making business were forced to close because they could not get the funds to keep things running.
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Paradigm Shift
Posted by Trevor at 09:38 UAE time
Having been an avid reader of Mr Kanoo's previous thoughts let me say firstly that I'm a fan.
However, one of the lasting effects of the current crisis will be the global deleveraging of the banking system. We've seen it over the last 12 months and it's here to stay, and that includes the UAE...there has been a necessary paradigm shift and cheap credit is now a thing of the past. Bank's are lending but not as easily as before this tsunami. If you're business (or personal finance) model revolves around easy access to cheap money then you need a new one or you will go out of business.
Government's around the world have had to prop up the liability and capital side of the global balance sheet, to rescue shareholders, and now compete for whatever limited financial resources are liquid, including those that would have been available for business (including real estate).
What hasn't really started yet is consumer deleveraging and that will get really ugly. Keep your head down.
Regards,
Trevor
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