Dubai: The decree making Emirates Credit Information Company (Emcredit) the official credit information agency of Dubai will act as a catalyst for the emirate's economy.
It will improve transparency of financial transactions and bring about a greater sharing of information between banks, a senior banker said yesterday.
"By building an informed financial society, consumers will become more aware of their financial exposure and turn to better financial management tools to grow and protect their wealth effectively, and manage their finances more closely," Chris J. de Bruin, Head of Consumer Banking at Standard Chartered UAE, said in a statement.
"Therefore we are in full support of this news which makes it compulsory for financial institutions across the emirate to join Emcredit's database.... Proactive data sharing enables banks to confidently extend loans out to reliable borrowers and helps in increasing liquidity, resulting in econ-omic growth."
The decree issued on Monday by His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, makes it mandatory for financial institutions to join Emcredit's database.
It mandates Emcredit to comply with the criteria and instructions stipulated by the Department of Economic Development (DED) and with guidelines issued by the UAE Central Bank, when processing credit information. The decree lays out the legal and operational framework and makes Emcredit responsible for providing credit reporting services in the emirate.
