03/08/2017
Myanmar Business Today
INVESTMENT & FINANCE
Myanmar’s First Credit Bureau to Receive License Next Month: IFC
AUTHOR: KYAW LIN HTOON | 01 AUG 2017
A Credit Bureau is an important step towards transparent financial services
Myanmar’s first-ever Credit Bureau will launch in the next 9 to 12 months as it finishes receiving licenses and trainings from the Central Bank of Myanmar (CBM), according to International Finance Corporation (IFC).
“The CBM is due to complete the licensing process sometime next month. Coupled with the timeline mandated by the Credit Information Reporting System, the credit bureau should be fully functioning in the next 9 to 12 months,” said Khin Thida Maw, country officer of IFC.
Over the last three years the IFC has been working with the CBM and other key stakeholders to develop the nation’s inaugural Credit Bureau by fine-tuning mechanisms for licensing, data collection, protection requirements, etc.
The bureau is a joint venture between Myanmar Banks Association (MBA) and NSP Holdings, a Singapore based firm with extensive experience operating the credit bureaus that changed its name to Asian Credit Bureau Holdings to better suit its consulting activity.
Last year DICA gave Myanmar Credit Bureau Limited the green light on the condition that they submit all data they collect to the MCB.
“The establishment of a Credit Bureau is monumental in promoting transparent business practices and preventing acts of fraud or financial misrepresentation,” remarked Dr. Hla Nyunt, Deputy Managing Director (IBD) of Global Treasure Bank. He explained that the bureau will be able to prevent borrowers who’ve defaulted on loans from seeking additional funds from other banks.
In addition to collecting information regarding loans, credit history, tax documents, the IFC is working to expand the Credit Bureau reach to gather information on microfinances, and rent and utility payments, said Khin Thida Maw.
“The Bureau can’t guarantee fraud won’t occur. But offering lenders the resources of an effective credit bureau better equips them to comprehensively evaluate entities before providing loans,” she added.
According to an announcement issued by the World Bank and International Finance Corporation (IFC), in Myanmar the percentage of companies receiving financial services from banks is the lowest among the ASEAN countries.
The IFC is currently training CBM staff in the necessary capabilities to effectively operate the Credit Bureau.
http://www.mmbiztoday.com/articles/myanmar-s-first-credit-bureau-receive-license-next-month-ifc
Myanmar’s first-ever Credit Bureau will launch in the next 9 to 12 months as it finishes receiving licenses and trainings from the Central Bank of Myanmar (CBM), according to International Finance Corporation (IFC).
