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Abu Dhabi Islamic in Emcredit deal

Dubai, December 23, 2009

Emcredit, the UAE’s first government-backed credit bureau, said it has signed an agreement with the Abu Dhabi Islamic Bank (ADIB), to provide credit information services in supporting the bank's financing activities.

ADIB is the first Abu Dhabi bank to become a full member of Emcredit, and among the leading Islamic banks in the country to invest in enhancing its risk management practices.

Under the terms of the agreement, ADIB will provide payment and repayment records of its customers to Emcredit’s data pool.

In turn, ADIB will benefit from Emcredit’s comprehensive credit information reporting and risk assessment services, which are based on data compiled from a range of public and proprietary sources, said a company official.

'It is encouraging to see that leading Islamic banks in the UAE banking industry are setting a fine example by making risk management a strategic priority,' said Ali Ibrahim, managing director, Emcredit.

'The global financial crisis has brought many issues to the forefront, of which, understanding customers' repayment behaviour is crucial. As a dynamic bank, blending modern vision with traditional principles of Sharia, ADIB will be able to make more informed decisions based on Emcredit's in-depth credit information services,' he noted.

'Credit bureaus are based on the concept of collaboration. ADIB has taken the lead in Abu Dhabi to support the data sharing environment in the UAE. Such proactivity is required in the country, especially in the current economic scenario, to help banks protect themselves against unnecessary credit risks,' he added.

Tirad Mahmoud, CEO of ADIB, said: 'As the leading Islamic bank with a large and diverse customer base, we greatly understand and believe in the role of credit bureaus, and are pleased to become a member of Emcredit.'

'Although Islamic banks are generally risk-averse, it is also important to continuously invest in modern systems and tools to strengthen our risk policies in line with the evolving banking landscape. This is important in working towards our goal of becoming a dominant global player in the Islamic finance sphere,' he added.-TradeArabia News Service




Tags: Emcredit | Risk management | Abu Dhabi Islamic bank |

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