2023-12-27 11:50:23
Abu Dhabi (Etihad)
The Central Bank of the Emirates issued a new framework to regulate short-term credit facilities, within the amended financing companies system, to keep pace with the global shift in financial trends in consumer behavior, and the increasing demand for “buy now and pay later” credit services and products.
Under the provisions of the new framework, short-term credit can be provided through institutions that act as agents for banks or licensed finance companies. Institutions can also practice this activity, following being licensed by the Central Bank as financing companies with limited licenses.
Institutions that practice short-term credit activities without a Central Bank license, and wish to continue their activity, must apply for a license as financing companies with limited licenses, or as a partner with a bank, or a financing company licensed by the Central Bank.
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