Lenders have an obligation to ensure they do not take on clients who will later run into financial trouble such as defaulting on debts or writing bad cheques, said the chief executive of United Arab Bank (UAB).
Banks must take "know-thy-borrower" as a mantra, said Paul Trowbridge, the bank's top executive, which would go a long way towards reducing the number of bounced cheques in the banking system.
Mr Trowbridge is just the latest leading figure in the UAE banking industry to speak out about the dangers of bouncing cheques and how the prevalance of the illegal practice weighs on the financial services sector and the economy as a whole.
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