Beirut, September 27, 2007 — IFC,
a member of the World Bank Group, in collaboration with Visa International
and the Association of Banks in Lebanon, today held a roundtable to share
international best practices for developing private credit bureaus. The
goal of this partnership is to demonstrate the benefits of credit reporting
and raise awareness among financial institutions and other stakeholders.
The roundtable targeted senior managers of commercial banks and government
officials who are instrumental in developing the private credit bureau
industry. Participants discussed the role of credit reporting in modern
risk management and in increasing access to finance. They analyzed the
components of an enabling regulatory environment and the challenges of
establishing private credit bureaus.
Francois Bassil, President of the Association of Banks in Lebanon, said,
“The existence of accurate information helps banks and other lenders assess
the creditworthiness of individuals and small businesses and their ability
to pay back a loan. This would minimize the risk of nonperforming loans
and prevent customers from being overly in debt.”
Tony Gougassian, Visa’s Country Manager
in Lebanon, said, “Considering that Lebanon is being rebuilt, the credit
bureau will aid the local banks in channeling investments to promising
private enterprises that will facilitate the development process. In addition
to streamlining loan processes, this will lessen the burden of land collaterals.
We believe the roundtable will create a platform for healthy and informative
discussions on the issue, helping our member banks and the public understand
fully the capabilities and opportunities that the credit bureau will bring
to the country.”
Julia Brickell, IFC Country Officer
for Lebanon, said, “The international experience indicates that the availability
and use of credit reports in Lebanon would help reduce lenders’ operational
costs besides increasing the quality of credit decisions and providing
significant risk mitigation. This would also lower the cost of financing
for borrowers. Credit bureaus are a crucial building block that enable
greater access to finance for both individuals and small businesses, thus
inducing healthier financial systems. This workshop is yet another major
step toward meeting this need in the country.’’
IFC’s Global Credit Bureau Program provides ongoing assistance in more
than 30 countries. IFC’s support comprises help in developing a legal
and regulatory framework and specific advisory services for the start-up
and expansion of credit bureaus, including strategy, technical partner
selection, and outreach and awareness events. IFC launched its regional
program in 2005, and it is managed by IFC Advisory Services in the Middle
East and North Africa - PEP-MENA.
IFC has partnered with VISA International
to support the development of credit bureaus in developing countries. Visa
is the first private sector company to contribute to IFC’s Global Credit
Bureau Program. An agreement was signed in 2005 whereby Visa provides financial
and technical support as needed, including sharing expertise on credit
risk management and disseminating best practices to banks.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth
in developing countries by financing private sector investment, mobilizing
private capital in local and international financial markets, and providing
advisory and risk mitigation services to businesses and governments. IFC’s
vision is that poor people have the opportunity to escape poverty and improve
their lives. In FY07, IFC committed $8.2 billion and mobilized an additional
$3.9 billion through loan participations and structured finance for 299
investments in 69 developing countries. IFC also provided advisory services
in 97 countries. For more information, visit www.ifc.org.
About Visa International
Visa operates the world’s largest retail electronic payments network providing
processing services and payment product platforms. This includes consumer
credit, debit, and prepaid and commercial payments, which are offered under
the Visa, Visa Electron, Interlink, and PLUS brands. Visa enjoys unsurpassed
acceptance around the world, and Visa/PLUS is one of the world's largest
global ATM networks, offering cash access in local currency in more than
170 countries. For more information, visit www.corporate.visa.com.
About The Association of Banks in
Lebanon
The Association of Banks in Lebanon is a professional industry organization
that was established in 1959. Its key mission is to serve and defend the
interests of its Lebanese and non-Lebanese member banks and to promote
them on the domestic and international markets.
The association is a key party when it comes to expressing views and opinions
on both debatable macro-economic policy issues and drafts of new financial/banking
rules and regulations. In addition, it plays an active role in coordinating
banks' efforts on common interest issues such as setting the minimum fees
and commissions on banking products and services, negotiating the employees
union on employment collective convention, and upgrading the payment and
telecommunication systems.
All 63 active banks in Lebanon are members of ABL. For more information,
visit www.abl.org.lb.
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