The Role of Emirates Credit Information Law in Organizing Credit Information to Serve Islamic Banking Finance Companies

Authors

Hani Mohamed Mounes Awad

 

Abstract

The bank shall assess its client’s creditworthiness; assess the extent to which the client requesting the financing is eligible to be granted the bank’s financing or not. Assessing such eligibility shall be based on real reasons and facts so the bank could defend such responsibility in case of prosecution, based on its decision to approve or reject funding and its justified reasons and facts. On the other hand, the credit decision maker should be familiar with the previous transaction financing, because such information contributes to the formation of an opinion of the decision maker that in turn determines the offer of the fund or not. So, the credit information is the base for the decision maker upon which the idea about the customer’s eligibility who demands credit funding is formed. The Emirati legislative significantly contribute to the literature of credit information, through establishing a specialized company which monopoly credit information operation. Such credit information report offers the banks several benefits due to the abundance of information contained obtained from the companies several information suppliers. Such matter leads to information abundance needed by the report, enabling the credit decision-maker to assess the client’s eligibility, where the company’s provider abides by providing true information.

DOI: 10.51958/aaujblv2i1p3