Kuala Lumpur, September 27, 2011—IFC,
a member of the World Bank Group, and Bank Negara Malaysia are training
government regulators and microfinance practitioners to better understand
and implement credit reporting and risk-management methodologies that help
expand credit for micro and small businesses in developing countries.
IFC and Bank Negara Malaysia began a
five-day training program this week for more than 90 regulators, lenders’
associations, MFI associations, credit reporting service providers, and
policy makers from around the world. The program trains participants in
advanced credit reporting techniques, including knowledge of legal frameworks,
new systems and technologies, credit underwriting processes, and non-traditional
data utilization. The workshop will also offer training in value-added
services such as scoring, modeling, and risk management strategies. A series
of hands-on exercises will give participants an opportunity to practice
the new techniques.
“This is the third consecutive year
that IFC and BNM have organized this exhaustive training, which is unique
in our sector,” said Oscar Madeddu, Specialist with IFC’s Global Credit
Bureau Program. “We are trying to fill a gap felt across developing markets,
where there is resounding demand for credit reporting and new risk management
The development of a strong credit reporting
system has the potential to radically transform the credit industry in
an economy. Enhanced credit information reduces loan processing times and
default rates, allowing lenders to increase the range of financial products
and services they offer to borrowers. These savings also translate into
lower interest rates, improving access to finance for individuals and micro,
small, and medium enterprises.
Launched in 2001, IFC’s Global Credit
Bureau Program has become an international leader in credit bureau development
by facilitating lending to individuals and businesses in emerging markets.
The program has provided credit bureau support in over 60 countries, and
has held over 110 events in 70 countries. Multiple donors fund the program,
including Australia, Canada, Italy, Japan, Luxembourg, the Netherlands,
Norway, New Zealand, Switzerland, Omidyar Network Fund Inc., and Visa International.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, providing advisory services to businesses and
governments, and mobilizing capital in the international financial markets.
In fiscal 2011, amid economic uncertainty across the globe, we helped our
clients create jobs, strengthen environmental performance, and contribute
to their local communities—all while driving our investments to an all-time
high of nearly $19 billion. For more information, visit www.ifc.org.