Aug 2, 2017

Myanmar’s First Credit Bureau to Receive License Next Month: IFC

Myanmar’s first-ever Credit Bu¬reau will launch in the next 9 to 12 months as it finishes receiving li¬censes and trainings from the Central Bank of My¬anmar (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 Re¬porting System, the credit bureau should be fully functioning in the next 9 to 12 months,” said Khin Thida Maw, country of¬ficer of IFC.

Over the last three years the IFC has been working with the CBM and other key stakeholders to de¬velop the nation’s inaugu¬ral Credit Bureau by fine-tuning mechanisms for licensing, data collection, protection requirements, etc.
The bureau is a joint venture between Myan¬mar Banks Association (MBA) and NSP Hold¬ings, a Singapore based firm with extensive expe¬rience operating the cred¬it 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 col¬lect to the MCB.

“The establishment of a Credit Bureau is monumental in promot¬ing transparent business practices and preventing acts of fraud or financial misrepresentation,” re¬marked Dr. Hla Nyunt, Deputy Managing Direc¬tor (IBD) of Global Treas¬ure 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 collect¬ing information regard¬ing 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 guar¬antee fraud won’t occur. But offering lenders the resources of an effective credit bureau bet¬ter equips them to com¬prehensively evaluate entities before providing loans,” she added.

According to an an¬nouncement issued by the World Bank and Interna¬tional Finance Corpora¬tion (IFC), in Myanmar the percentage of com¬panies 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.

Source: http://www.mmbiztoday.com/articles/myanmar-s-first-credit-bureau-receive-license-next-month-ifc

 
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