Abu Dhabi, 12 November 2013: Member banks of the UAE Banks Federation have agreed on a code of conduct to help them raise the professional standards of banking practice and to promote greater trust in the UAE banking industry. Entitled “Code of Conduct”, the document has been discussed by the CEOs Advisory Council of the UAE Banks Federation over the past few months and has received input from a wide spectrum of its members who have contributed both expertise and advice on international best practice.
The Code sets out requirements of the standards expected from all UAE Banks Federation members across a wide spectrum of attributes and disciplines. It covers such areas as management and control, relationships between banks, conduct in the market, conduct with customers, relations with the banks’ regulator and development of UAE national staff.
While the code is not legally binding on UAE Banks Federation members, it provides a set of benchmarks which all banks operating in the UAE market have committed to abide by and apply in their operations with various stakeholders.
The largest section of the Code covers conduct with customers. This sets out the commitment of member banks to treat customers fairly and openly and to manage complaints promptly and efficiently. It also provides for bank staff to be properly trained on the products offered by banks and their suitability for specific customers. Furthermore it underlines the importance placed by banks on transparency in advising customers about interest rates and fees and other charges relating to products, and to ensure they are aware of the obligations they are undertaking in applying for such products.
The Code also reflects the importance placed by member banks on the development and training of UAE national staff, and encourages the recruitment of fresh graduates.
H.E AbdulAziz Al Ghurair, Chairman of the UAE Banks Federation, welcomed the launch of the Code of Conduct during a press conference held today in Dubai. He said: “This document represents the collective desire of our member banks to apply world class standards both in terms of the way they operate and how they provide services to their customers. The Federation is proud to have been able to adopt these rules, which shows how the banking sector in the UAE is rapidly maturing and recognises that with success comes responsibility. Though these are in effect guidelines, we will take any breaches in their application very seriously and will seek remedial action from any member bank that is not meeting the standards set out in the Code. I would add that the Code is a dynamic document and we will continue to develop it as we grow and develop as an industry. This is a statement of serious intent by all UAE banks.”
Mr. Andre Sayegh, CEO of First Gulf Bank, who headed the specialised committee responsible for concluding the Code of Conduct, added: “UAE member banks of course all have their own codes of conduct and are regulated by the Central Bank to ensure that they comply with the proper standards of service and operations. This document brings an added layer of aspiration about where the UAE banking sector wants to be, and how to be seen, which shows that as a community of banks they are determined to bring the best quality of service that they can to their customers in the UAE. The specialised committee and all who contributed to this exercise have brought a very broad range of experiences and best practice models to the table, so that we can apply the best principles to the way banks serve their customers, and do their business.”
The full text of the code of conduct will be available on the UAE Banks Federation website and will also be made available through member banks on their websites.
The UAE Banks Federation plans to follow up this initiative over the coming months with an exercise to discuss the creation of a customer rights charter which will incorporate standards that can be expected by customers and actions that they can take where services provided or products sold have not met their reasonable expectations.