FMSB backs creation of private credit bureau

27 July 2016 11:33 (UTC+04:00)

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By Nigar Abbasova

Azerbaijan’s Financial Market Supervisory Body supports establishment of a private credit bureau in the country, said Rufat Aslanli, Chairman of the FMSM Board of Directors.

“We consider creation of the bureau as a support for development of the infrastructure of financial services. Moreover, we find it reasonable that non-banking credit organizations, systems of communal payments, as well as mobile operators and large retail networks join the bureau in the future,” he added.

The bureau is expected to gather all necessary credit information from other financial institutes such as leasing companies, organizations engaged in micro crediting, non-financial organizations as well as telecommunication companies and commercial entities that sell goods on credit.

Iceland Creditinfo Company is a technical partner of the project. The company is considered to be one of the leading local credit information providers in Iceland that provides a wide range of services in the sphere of credit risk management.

“The technical partner will become one of the shareholders of the bureau in the future and will participate in the processes of analysis of credit reports and preparation of the development strategy of the bureau,” Aslanli said.

The establishment of the private credit bureau is expected to strengthen the sustainability and stability of the financial sector of the country.

Azerbaijan started to create credit history of borrowers following establishment of the Centralized Credit Registry (CCR) at the Central Bank in 2005.

The CCR hosts data on all loans of individuals and legal entities with loan obligations in the banking sector of the country regardless its amount. Only banks and borrowers, on whom information is placed, have the right to use the information with the purpose to assess a credit applicant.

Main objective of the CCR is to provide reliable information on current and potential borrowers, promote borrowers to follow market discipline and eliminate credit risks of banks and non-bank credit organizations.

Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova