The Credit BureauCredit bureau
From 2001 to 2003, Javier Piedra, Prague Ma's senior advisor, and a group of four regional advisors evaluated opportunities, drew up a strategic blueprint and argued to high-level Kazakh civil servants that it was possible to build a well-functioning credit bureau on the basis of best practice.
The main interest groups agreed with much of the FSI's theory, but it was not clear that the finance industry was willing to hand over its own property information, perhaps its most important capital, to a credit bureau. In order to move forward, Piedra and his multi-stakeholder group had to discuss two complicated topics - the credit bureau property and management architecture and a regulatory credit exchange environment - and convince a large proportion of credit institutions to pool their information.
This case gives details of the credit bureau's operations schedule.
A new credit bureau to enhance transaction processing in Jordan | Jordan 2016
Bankers and small companies applauded the creation of Jordan's first credit bureau in 2015, with the new private entity to enhance the Kingdom's credit expansion, capital spending environment and corporate finance. Despite being postponed by years as policymakers chose the best way to introduce the new office, the office eventually started work at the end of 2015 to help the government's effort to strengthen credit to small and medium-sized companies (SMEs).
Whilst there is still room for improvements, some interest groups argue that a lower reporting debt level is needed if the office is to be truly efficient, setting up a credit bureau could be a turning point for credit expansion in the UK. The Credit Bureau was established as part of on-going initiatives to change the Jordanian commercial landscape, attracting new investments and supporting entrepreneurship. It was initially established in 2008.
In 2010, the federal administration adopted a bill approving the office, although various interest groups regarding the precise shape and functioning of the new office had until recently been delaying its establishment. Loan Bureau will allow credit institutions to obtain a greater proportion of SME loans and interested parties have argued that the terms for such an institution are optimal.
For example, in August 2015, the credit information service CRIF, which own the office, said that the Jordanian credit markets comprise 185,000 credits per year and are growing at an average rate of 20% per year. 5 per cent in 2017 and mid-single-digit rate inflation before declining in the years to come, the creation of a credit bureau is seen as crucial to the expansion of long-term FS.
The CRIF also noted that in comparison with the advanced credit market, where credit claims for consumers generally represent about one third of the total number of people on an average per year, the Jordanian rate could increase to 40% to 50% in the years to come, taking into consideration the number of credit suppliers concerned, i. e. credit service companies, credit institutes and credit institutes. For the first time in the Arabian world, the Jordanian credit bureau is supervised by the Central Bank of Jordan (CBJ), but owned by CRIF, which operates in 50 different nations, 3100 finance institutes and 25,000 customers.
It is the only credit bureau in the Arabian world fully privately held. Nevertheless, the authorities are considering opening the credit bureau business up to new competitors in the near term. The response to the new office has, however, been largely favourable, as shown by the increasing number of banks participating in the work.
CRIF in February 2016 announces that it has concluded credit information services with six UK financial institutions, among them Bank al Etihad, Capital Bank, Jordan Kuwait Bank, Housing Bank, Standard Chartered and Arab Jordan Investment Bank. The CRIF also said that by the end of 2016 it will begin to provide full credit reporting via a single electronic credit reporting system.
Co-operating with 19 banking institutions, two telecommunication operators and an insurer, the firm is experiencing high unsatisfied levels of customer activity.