Saturday 21 November 2015

UAE’s banks should be engaging with the real world | GulfNews.com

UAE’s banks should be engaging with the real world | GulfNews.com:

"When the current panic in the SME (small and medium enterprise) market dies down, when banks begin to recover somewhat from the shocks created by a tidal wave of “skips”, the worst I have seen in 22 years here, they will, hopefully, put on their thinking caps to analyse what went wrong and how it could have been avoided.

It is quite clear that a mini sub-prime crisis has been created as a result of profligate lending to undeserving clients over the past five years. If indiscriminately throwing money at sub-prime clients caused the global crisis, both corporate and individual, then exactly the same has happened in the UAE.

The same causes shine through — ambitious growth targets, post global crisis exuberance, focus on assets to drive revenues, bonuses based on revenue rather than its quality, easy lending and tolerance of inefficiencies. Yes, plenty to think about."



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