Central Bank of UAE issues regulations on the conduct of SMEs – MENAFN.COM

SectorFinancial Services

The Central Bank of UAE (CBUAE) on Sunday issued a regulation for small to medium-sized enterprises (SMEs) to promote best practices among licenced financial institutions (LFIs) when engaging with SMEs. The purpose of the regulation is to improve SMEs' access to financial products and services. The central bank's launch of this regulation follows the launch of its new regulatory framework for financial consumer protection. The regulation seeks to promote a culture within LFIs of dealing with SMEs by defining their obligations when dealing with SME customers.

These include setting standards of business and market conduct by LFIs; strengthening the governance and oversight over the design, promotion and sale of financial products and/or services; and promoting responsible financing practices. 'SMEs play an important role in the UAE's economy. The UAE government has placed great emphasis on developing the SME ecosystem and removing obstacles to a transparent, enterprising and innovative SME sector in the UAE, which has good access to various...read more...