22/03/2010
Gulf people seeks the «Mechanism» for handling the imbalance between the banks and the credit companies.
The Project is handled tomorrow with the committee of Central Banks Governors in Kuwait.
Gulf people seeks the «Mechanism» for handling the imbalance between the banks and the credit companies.
Is expected that the GCC will obtain a standard procedures in order to reduce the insolvency among firms and individuals, and to reduce the levels of bad debts through the exchange of credit information among banks.
Governors of Monetary Agencies and Central Banks Committee in the GCC countries are looking to their conference tomorrow in Kuwait, with Abdulrahman Al-Attiyah, The General Secretary of Gulf Cooperation Council, regarding the subject of coordination and exchange of credit information between the Council and to consult and exchange views on developments and the monetary and financial developments in countries members.
They will discuss the submitted recommendations by the Technical Committees on the themes of control, banking supervision, payment systems and banking training institutes and colleges in the GCC countries, along with the conclusions of the technical committee for the currency union of recommendations on financial and monetary statistics.
Below are more details:
Is expected that GCC will obtain a standard procedures in order to reduce the insolvency among firms and individuals, and to reduce the levels of bad debts through the exchange of credit information among banks.
Al-Attiyah explained that the meeting schedule contains several subjects, starting with what have been given to the Supreme Council in Kuwait regarding the economic sector, from Bahrain perspective to develop the GCC Council, and the Authority suggestions to the Council in regard with the global financial crisis and its effect in the Gulf countries.
Sources indicate that 3 out of 6 Gulf countries doesn't have specialized companies for the credit information exchange.
Taking in consideration the GCC approach to the union currency, with the priority to provide a minimum limit of information exchange regarding the financial transactions for loaners in the Gulf.
The financial reports referred to the raise in the loan requests from 61 banks in the Gulf with a 40% per cent in 2008 to reach 9.4 billion dollar during 2009.
The reports also indicates that the bank credit for the private sector has been reduced during the year 2009, expecting a rise on the apportionment with 40% per cent to amounting 10 billion dollars, which represents 1.7% from the Bank credit total.
The Agency referred to the percentage of the insolvency Companies in the Gulf which couldn't be mentioned, in which some relapse conditions happened at the end of 2009 took part in changing this image.
According to the primary project of the credit information's executive list, the credit record must contain some of the related information which has to do with the consumer's credit evaluation.
The steps taken by Saudi Arabia at the individual level, Monetary banks have committed the licensed banks in the UK not to allow the agent or the person designated to be nominated by a client card holder credit card or additional payment issued by the bank, withdraw cash using the cards credit card or pay only a maximum of 50 per cent of the credit limit on it.
«SAMA» according to the controls of the issuance and operation of credit cards and payment cards new link or not to add features or additional services that require the payment of additional fees and commissions (such as products involving credit or insurance products against non-payment, etc.) which is optional for the characteristics of the main product for a credit card or debit card, account credit card or debit card. The card issuers must also clearly disclose all fees and charges for such services provided to the customer within the display features are optional.
