While it can’t be said that the mainly western financial crisis passed the GCC by, nor has its impact been all-pervasive. However, there is no doubt that some of the more high-profile financial difficulties in the region have been broadly contained. So what lessons have been learnt, and has business behaviour changed? There is general agreement that banking behaviour has changed, in particular the practice of "name lending".
According to one banker at a recent ACTME event,
Name lending is completely dead. Even in a case where security is offered, credit applications now all follow the same path irrespective of the customer and his prior relationship with the bank.
More generally there is a move towards more active credit control by banks including reviewing existing facilities and constraining new credit availability. Corporates are looking at non-bank sources of funding and other ways both to fund and protect their commercial credit exposures via trade insurance.
The banks and other stakeholders – government, regulators, shareholders, debt investors – are now looking for changes in corporate behaviour whether in response to credit applications or a more general raising of business standards. Governance is fast becoming a critical issue for many corporates, some of which are scrambling to restore credibility following much publicised debt repayment difficulties or even defaults.
In addition there is a rising demand for suitably qualified treasury, risk and finance professionals – across all types of organisation – evidenced both by participation at ACTME events and by interest in the ACT’s qualifications suite for all levels of treasurers and those responsible for treasury management. ACTME is delighted to offer these opportunities to its fast-growing membership.
PETER MATZA
Head of publishing, ACT
