Interesting facts:
Currently, there are more than 7,5 thousand companies registered in RAKIA Free Zone Full versionIf you are planning to put a decent amount of money in a bank, the issue of its reliability comes first. It affects the safety and security of your funds, and hence your confidence in the future.
There are numerous criteria that determine the degree of a bank reliability. Let us consider the most important ones.
This is both the easiest and the most efficient way to determine the trustworthiness of a bank. The rating is assigned to UAE banks by the authoritative independent agencies: Fitch Ratings, Moody's, Standard & Poor's. It is denoted by three, two or one letter from A to D.
The most reliable UAE banks hold three AAA ratings. They are followed by AA, A, and then in descending order of reliability: BBB, BB, B, CCC, CC, C, DDD, DD, D. In general, the reliable banks are those holding the rating, which is equal to or more than B. If a financial institution holds a one D rating it means that it has become bankrupt.
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Information on founders can be found on the official website of the bank. If it is not clearly specified, or you are told that “it is provided only upon the request” or that “it is a commercial secret”, there is good reason to doubt on the reliability of this financial institution.
The owners of the most reliable financial institutions in the UAE are the investors who possess considerable capital. These are usually the state, profit-making corporations or bank consortia.
The assets include the property of the bank and the issued loans, securities, cash on hand, investment portfolio. The more assets are, the more extensive the activity of a financial institution is, and therefore, the higher place in the ranking of banks it holds, the more credibility it has.
Different countries have different minimum value of the bank's equity. Besides, this value can vary (usually it moves up). The closer the equity to the minimum is, the higher the probability that the license will be terminated in the case of increase of the mandatory minimum.
Young banks, which were created a few years ago, cannot boast the same degree of reliability as the banking institutions with more than 20 years of experience.
Another important criterion is the dynamics of development. If the bank is ahead of its competitors in terms of the growth rate, it is a positive indicator.
By the way, the UAE banks are considered to be the most reliable financial institutions worldwide.
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