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UAE Credit Bureau Starts Issuing Consumer Data To Banks

UAE Credit Bureau Starts Issuing Consumer Data To Banks

The credit reports include consumers’ debt obligations and payment behaviour patterns for the past two years.

A federal credit bureau in the United Arab Emirates has begun issuing credit information about consumers to banks and financial institutions in an effort to strengthen the country’s banking industry.

Al Etihad Credit Bureau has started sending consumer credit reports to banks and financial institutions that have submitted historical credit data to it, the bureau said on Monday.

Until now, banks in the UAE have often been unable to access data on consumers at other financial institutions when making lending decisions. This has allowed borrowers to obtain money from many lenders and run up big debts which sometimes prove impossible to repay.

The credit reports include consumers’ debt obligations and payment behaviour patterns for the past two years.

“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,” the statement said.

Individuals can get a comprehensive overview of their current financial obligations and debt payment details of the past two years from the reports, it added.

Some 5.2 million credit facilities of individuals living in the UAE have been added to the bureau’s reporting system. This represents 97 per cent of all such facilities provided by institutions operating in the UAE, the bureau said in August.

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