By Andy Sambidge
Al Etihad Credit Bureau begins to provide financial institutions with customer data after previous launch delays
UAE's long-awaited federal credit bureau said on Monday it has begun the issuance of consumer credit reports to banks and financial institutions following delays in starting operations in the UAE.
The credit reports will include consumers’ debt obligations and payment behaviour patterns for the past 24 months, the Al Etihad Credit Bureau said in a statement.
"These reports will no doubt contribute positively to the banking sector, playing an important role in the assessment and management of credit and possible losses resulting from non-performing loans. Individuals will in turn, be able to have a comprehensive overview of their current financial obligations and debt payment frequency and consistency over the past two years." it added.
Customers will shortly be able to request their credit reports through the bureau’s customer service centres in Abu Dhabi and Dubai, the statement said.
Al Etihad Credit Bureau had previously been scheduled to start operations last year and then earlier this year
The credit reports will include records about consumers' debt levels, financial obligations, credit payments, history of default payments and late payments.
Until now, banks in the UAE have often been unable to access data on consumers at other financial institutions when making lending decisions. Borrowers could obtain money from many lenders and run up debts they sometimes could not repay.
This is very very good news!
Great work to the authorities putting this in place as it will be essential to taking the individual credit risk out of the system.
This is good for everybody in the long run...
This will play a vital role in terms of financing to individuals and will give edge to banks at what extent credit exposure could be taken based on ones credit history.
There must be some sort of consumer credit score card as well for more prudent lending decision.