Some banks baulk at pricing of Dubai's metro loan

Dubai gov't want to borrow $2.8bn for the 15km extension of metro system to the site of the World Expo


Actions speak louder than words. Integrity is a fundamental leadership attribute and it?s essential for a strong ethical culture that integrity starts at the very top. Senior bank managers are the upholders and safe-guardians of the banks ethics and values. Senior managers who send the admonitory order which is followed by a self-deprecating phrase ?Do as I say, not as I do? are seriously impairing the mission and strategy of the bank and this can never be the basis for a culture of integrity, ethics and values. Ethical leadership must align thoughts, words and deeds otherwise its all fish tales, blatant dishonesty and hokum used as an ineffective tool of governance.


In a nutshell, senior bank managers should not encourage the erosion of values, ethics, integrity and morality, they are expected to act as role models to all working in the banking industry, leading by example and displaying high standards of integrity and a commitment to ethical conduct and the public interest at all times so that trust in banks and bankers is restored.


It takes very few years to push ethical culture change down through a department. With the average tenure of a senior managers six years, their primary focus should actually be on leaving an honourable legacy by inculcating ethics and values for the long term and empowering others to carry on the baton.


All banks offer the same products, that is why all banks need to develop a clear identity based not on what they offer but on what they do best. Each bank must distinguish itself from the rest of the pack and this will take coherent, deliberate and innovative thinking. Start by asking how the bank can add the most value? Will yours be the bank that innovates? Will it put the customer first? Will it pursue the digitisation of banking, both at the customer interface and in your core processes? Do you have a blueprint for bringing your strategy to life? Do you have the right progressive people who have the vision and responsibility to establish the mission, set and articulate the strategy? Do you have the right management who will walk the talk and reinforce its culture of ethics, values and integrity?


Banks must overhaul their whole banking strategy. This is the 21st century and banks stuck with a 20th century mindset are doomed. This is not the time for doom & gloom and scare-mongering mentality rather this is the time for out of the box strategising and creative thinking. Banking transformation needs to be about more than just processes and products and systems, it needs to shift rigid mindsets and antiquated outlook ? it needs to be about people, the right people. Banks must encourage diversity of thought. Banks must understand the new market dynamics, and realise that millennials will dominate the workforce by 2025 and they will be more mobile, more tech. savvy and more entrepreneurial.


Leaner is better, always better, better in good times, bad times and uncertain times. To achieve the profit margins they desire, obese banks should consider launching a slim-down strategy as cost reduction becomes increasingly essential in a prolonged low oil prices market, slowing private sector loan growth, non-performing loans (NPLs) and rising provisions dragging down profits. Since the recession, banks have learned that maintaining unnecessary layers of fat ? overhead in the way of several departments and overstaffing (under some pretext or the other) can quickly become dead weight if the economy takes a turn for the worse.

Aleem Rauf Khan

This is crazy! Banks are suffering because Government withdrawing deposits and then now getting a bad deal with lower pricing. Neither the Gov nor the banks will gain from this. Dubai government rating (presumed) is worse anyway. Banks are likely to focus on other economies in the region such as Kuwait and Qatar which are better rated and not shy to pay up.


I disagree with JRH. I think the days of banks making huge profits are over and they have to tighten their belts like every other commercial operation. Borrowers are now looking for better deals from the Banks and it is time the banking industry lived in the real world and not the world of oversized incomes and ridiculous margins that created the last recession for the rest of us. Well done Dubai Government. let's see more of this.


@JRH they did, not so long ago, in the UAE. Interestingly enough times are changing.


So banks should just provide debt at pricing below their own cost of funds?

That aside when did banks become charities? They're businesses like any other commercial enterprise with a mandate to create value for their shareholders.

As for tightening their belts - trust me they have.


The days of banks writing big cheques for next to no return are over - certainly international banks are under considerable pressure to justify any lending with ancillary returns and thus their balance sheets have become a precious commodity.

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