UAE Retail Banking · Product Desk

Price, document and approve retail lending products — the way a UAE bank actually does it.

The working desk for product, credit and risk teams. Draft the committee paper, model the economics on a real pricing engine, check it against live CBUAE rules, and position it against the market.

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Disclaimer

PMbudi is a personal, independent side project, provided free of charge as a resource for the UAE banking community. It is not affiliated with, endorsed by, or connected to the Central Bank of the UAE (CBUAE), any bank, financial institution, employer, or regulatory authority.

Nothing in this tool constitutes legal, financial, regulatory, tax, investment, or professional advice of any kind. All content — including regulatory figures, limits, templates, pricing outputs, calculations and document drafts — is illustrative and indicative only, may contain errors or omissions, and may be incomplete or out of date. Regulations and market rates change frequently. You must independently verify everything against the official CBUAE Rulebook and other authoritative sources before relying on it or using it for any decision, submission or document.

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© 2026 PMbudi · A free community resource · UAE retail banking

Draft concept paper
RAROC
Awaiting economics
Enter an indicative rate to model the return.
Product proposal · UAE retail banking

Untitled product

Ref
PV-CONCEPT
Date
Product type
Mortgage
Segment
Standard
Owner
Committee
Status
For concept approval

01 · Executive summary

A one-line description and an indicative rate will compose the summary.

02 · Introduction

Name the product, its owner and committee.

02b · What Is Changing

Describe the current position and proposed change.

03 · Product description

Tenor
Max LTV
Indicative rate
Min amount
Segment
Salary transfer

Describe the structure at a high level.

04 · Target customer & segment

Who this is for.

05 · Scope

In scope

Out of scope

06 · Why we're building this

Why now.

07 · Market scan

08 · Pricing & P&L

Pricing matrix

Enter a rate to build the pricing matrix.

P&L projection

Indicative rate
RAROC
Yr-1 econ. profit
Cum. econ. profit
Modelled by the shared MargIn engine. Reversion blending, prepayment and run-off are baked in; full stress and rate-shock live in the Pricing view.

09 · Risk assessment

Credit:

Market:

Operational:

10 · Regulatory & compliance

11 · Implementation plan

12 · Recommendation

What approval is being sought.

MargIn

Pricing & portfolio workbench — the rate, the P&L, the return, the book and its risk. The same engine that scores the concept paper. Hover any label.
POWERED BY PMBUDI API
part of PMbudi
how the model works ↓
Optimal fixed rate
Effective yield
Book
RAROC

Profit vs. headline fixed rate

Customers shop the fixed rate; the bank earns the blended yield after reversion, fees, losses & opex.
explore a rate
profit / yr
RAROC
vs optimum

The real output isn't a number — it's a range

Effective-yield build-up

What the blended yield is paying for, at the optimum.

What moves the answer

Swing in annual profit when each assumption moves ±20%. Longest bar = biggest lever.

Set the target

How much new lending will you write? The engine prices it and reports the consequences.
target new bookAED 400m
implied fixed rate
effective yield
flat rate
Return on capital
Operating profit
Economic profit
Capital deployed

The one-line board answer

Annual P&L

Steady-state year at the implied rate (fees annualised).

Risk & capital

What's exposed, what could be lost, what's tied up.
Downside check

Growth vs. return

Chase volume → cut the rate. Profit (gold) peaks then falls; return on capital (green) keeps sliding. Your target is the marker.

Projection inputs

Priced at the optimal fixed rate. Originations grow each year; prepayment and defaults erode the book.
Cumulative econ. profit
Book at year-end
Avg RAROC
Loans booked

Run-off is already netted out

Book & profit over time

Bars = outstanding book (left). Gold line = annual operating profit (right). The book compounds as new cohorts stack faster than old ones run off.

Year-by-year P&L

Each year nets out prepayment and defaults. Year-1 RAROC runs hot because upfront fees land on a small book.

Rate shock setup

One EIBOR move, two risk reports — margin (ALCO) and credit (affordability). Priced at the optimal fixed rate; the back-book can't reprice.
COF passthrough1.0×
NII at risk
RAROC at +200
Stressed loss +200
DBR at +200

One shock, two committees

Margin & return vs. EIBOR

Gold = margin, green = RAROC. The floor flattens the left (rate cuts); the right (rate rises) is the unprotected zone — margin compresses and credit deteriorates together.

Shock table

Each EIBOR scenario at the optimal fixed rate. Reverted rate is floored; DBR & stressed PD drive the credit side.

Synthetic book

We synthesise the existing book — past vintages priced off their own year's EIBOR, then aged with run-off to today. One segment, illustrative.
Book size
Book yield
Margin vs COF
Portfolio RAROC

Where the book's margin is heading

Book composition & yield

Bars = outstanding by vintage (blue still fixed, gold reverted). Gold line = each vintage's rate; green = blended book yield; red = COF. The gap between green and red is your margin.

The reset wall

AED reverting off its fixed rate in each of the next few years. A yield uplift as cheap fixes reprice up — but also your peak attrition window, since that payment jump is when borrowers refinance away.

Concentration

Single-name exposure loan-level pricing is blind to. A layoff at one employer or trouble at one developer is correlated default.

Vintages

Each origination year, its rate environment, and whether it has reverted yet.

Pricing matrix · risk-based grid

Base rate for the prime customer (UAE National · Govt · ST · AECB 720+ · salary 50k+). All other segments stack bps adjustments. UAE Nat × ST/NST and Expat × ST/NST shown as four panels — matches the Proposal pricing matrix.
%
·Bps adjustments
Nationality / salary transfer
bps
bps
AECB band add-on
bps
bps
Salary band add-on (vs 50k+ base)
bps
bps
bps
base
Employer category add-on
bps
bps
bps
bps

2×2 segment grid

UAE Nat ST | UAE Nat NST · Expat ST | Expat NST. Cells = base + AECB + salary + nationality + ST/NST.
Set base rate to build matrix.

How the model works

The customer shops the headline fixed rate; the bank earns a blended yield = fixed rate for the fixed period, then EIBOR + reversion margin for the rest of expected life. Expected life is set by prepayment + default run-off. effective yield = blended interest + fee yield; margin = effective yield − funding − expected loss − opex − capital charge.

Capital: regulatory capital is LTV-driven (Basel risk weight × CAR), so two borrowers at the same LTV carry the same regulatory capital even if one is far riskier. The economic-capital basis fixes that — unexpected loss ≈ a multiple of expected loss — so high-PD segments are charged the capital they really consume. Toggle the basis and watch near-prime RAROC change. COF is a single pool funding number (Treasury's), separate from EIBOR, which is only the asset's reference rate. The floor = reverted rate = max(EIBOR + margin, floor) — it protects margin when rates fall, but does nothing when they rise; set it above economic break-even, below market.

Risk-based pricing: the borrower segment sets PD, LGD and LTV, which flow into expected loss. ROI already nets early settlements and defaults: prepayment shortens life (less reversion income) but adds settlement fees; defaults drive the expected-loss charge. Optimizer finds the best fixed rate; Boardroom sets a book and reports the P&L; Projection stacks annual cohorts with growth and run-off.

Disclaimer: this is a vibe-coded side project, thrown together as a learning toy — not a professional, tested, or supported system. Provided strictly "as is", with no warranty of any kind. The author takes no responsibility whatsoever for any decision, result, loss, inaccuracy, or anything else arising from using it. Every figure is your own assumption. Not investment, credit, pricing, or any other professional advice — do not rely on it for real decisions. Single-file · no tracking · no backend. Fork it, change the model, make it yours.
CBUAE Reference · verified Jun 2026

Regulatory & Compliance Guide

Retail-lending rules drawn from the CBUAE Rulebook. Figures cite their source. Always confirm against the live Rulebook before submission — a working reference, not legal advice.

CBUAE Rulebook ↗
Loading regulatory data…
Document Generator

Product Documents

Generate compliant product documents from your concept paper inputs. Start with KFS — more document types coming.

📋
Key Facts Statement
CBUAE-compliant KFS for Mortgage, Personal Loan, and Auto Loan — conventional and Islamic. Pre-filled from your concept paper.
Mortgage Personal Loan Auto Loan Islamic
📄
Terms & Conditions
Standard T&Cs template with product-specific clauses, Islamic finance provisions, and CBUAE required disclosures.
All products
Coming soon
📊
Product Programme Guide (PPG)
Full PPG template covering product scope, eligibility, pricing matrix, approval authorities, and operational procedures.
All products
Coming soon
📝
Application Form
Customer-facing application form with required fields, declarations, and consent clauses pre-populated for the product type.
All products
Coming soon
⚖️
Offer Letter Template
Customer offer letter with facility terms, repayment schedule summary, and conditions precedent to drawdown.
All products
Coming soon
🕌
Murabaha / Ijara Contract
Islamic finance contract templates for Murabaha (PL/Auto) and Ijara (Home Finance) with ISSC-required disclosures.
Islamic only
Coming soon
Market Positioning

Where You Sit vs the Market

Enter competitor rates and terms. The comparison feeds straight into section 07 (Market Scan) of your proposal and the Word export.

Leave the name blank to pull it from your proposal automatically.
Competitors
Add a competitor to build the comparison. It will appear here and in your proposal's Market Scan.

Pre-flight Checklist

8 things your NPAC will ask. Track your readiness before submission.
Concept paper drafted and reviewed by Product ownerSections 01–12 filled, rationale clearly articulated
Pricing modelled and RAROC clears the hurdleRun through Pricing view — optimizer or boardroom mode
KFS drafted and reviewed by ComplianceUse the Docs tab to generate a first draft
CBUAE regulatory limits confirmed (DBR, tenor, LTV, fees)Check Regulatory tab for your product type
New fees approved or CBUAE ex-ante filing submittedRequired for any new or uncapped fee increase
Islamic products: ISSC approval obtainedRequired before any Islamic product is launched
Legal and Risk sign-off receivedSign-off grid in Section 11 of the concept paper
Go-live plan dates confirmed with Technology and OperationsSection 12 — no open dates before submitting