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 federation over the past few months.
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.
It also 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.
Abdul Aziz Al-Ghurair, chairman of the UAE Banks Federation, welcomed the launch of the Code of Conduct at a press conference held in Dubai on Tuesday.
“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. 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,” said Al-Ghurair.
Andre Sayegh, CEO of First Gulf Bank, who headed the specialized 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.”