Kuala Lumpur, Malaysia, November 7,
2011— IFC, a member of the World Bank Group, and Malaysia’s central
bank are working together to help strengthen credit-reporting techniques
and risk management in ways that are expected to expand access to finance
for small entrepreneurs in emerging markets.
IFC and Bank Negara Malaysia this week
began a five-day training program that brings together more than 100 regulators,
credit-reporting professionals, and microfinance practitioners from 43
countries of the world. The Fourth Credit Reporting and Risk Management
Training in Kuala Lumpur is designed to help attendees improve their skills
in assessing and managing credit risks.
Sound credit-reporting systems offer
the potential for enormous development benefits. They can radically
transform credit markets, reducing loan-processing times and allowing lenders
to increase the range of financial products and services they offer to
borrowers. These savings also translate into lower interest rates, thus
improving access to finance for individuals and for micro, small, and medium
enterprises, including broader economic gains, such as employment generation.
“The benefits of a specialized credit
reporting and risk management training can be far-reaching in helping fill
the financing gap across emerging markets,” said Oscar Madeddu, Principal
Specialist with IFC’s Global Credit Reporting Program. “This is the fourth
consecutive year that we are partnering with Bank Negara Malaysia on this
unique training and intend to continue this collaboration in future.”
Recognizing the gap in information-sharing,
IFC established the Global Credit Reporting Program in 2001 to enable sharing
of best practices around the world and to foster the development of credit-reporting
systems in emerging markets.
An international leader in strengthening
credit reporting, the program has supported the set-up or significant improvement
of credit-reporting systems in more than 20 countries. It has also facilitated
the drafting of new enabling regulations in 32 countries. Thirty-one million
credit inquiries have been generated through the program—worth an estimated
$6.2 billion in new financing for about 6 million retail and small-business
Multiple donors fund the program, including
Austria, Australia, Canada, Italy, Japan, Luxembourg, the Netherlands,
Norway, New Zealand, Switzerland, United Kingdom, the 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.