Washington, D.C., October 26, 2006
– The International Finance Corporation, the private sector arm of the
World Bank Group, has launched a new guide explaining how to establish
credit bureaus. The guide, entitled Credit Bureau Knowledge Guide,
is the first publication to provide a comprehensive overview of the development
of credit bureaus.
Credit bureaus play a critical role in expanding access to finance to underserved
market segments, including small businesses. Consumer and commercial credit
information helps lenders make better credit decisions, reduce bad loans,
and increase the volume of business they undertake.
The new guide assembles global knowledge on credit bureaus, which has been
fragmented, much like the environment for sharing credit information itself.
The guide lists the steps to setting up a credit bureau, provides
guidance on best practices, discusses the necessary legal and regulatory
frameworks, and provides five case studies from Central America, Egypt,
Saudi Arabia, South Africa, and Vietnam.
“We hope that this guide will promote best practices in credit bureau
development and risk management, as well as assist policy makers and other
key stakeholders in designing policies and frameworks for furthering credit
bureau development in emerging markets,” says Peer Stein, Head of IFC’s
Global Credit Bureau Program.
The International Finance Corporation, the private sector arm of the World
Bank Group, is the largest multilateral provider of financing for private
enterprise in developing countries. IFC finances private sector investments,
mobilizes capital in international financial markets, facilitates trade,
helps clients improve social and environmental sustainability, and provides
technical assistance and advice to businesses and governments. From its
founding in 1956 through FY06, IFC has committed more than $56 billion
of its own funds for private sector investments in the developing world
and mobilized an additional $25 billion in syndications for 3,531 companies
in 140 developing countries. With the support of funding from donors, it
has also provided more than $1 billion in technical assistance and advisory
services. For more information, visit www.ifc.org.
About the Global Credit Bureau Program
Since 2001, IFC has supported the development of credit bureaus in over
40 countries through technical assistance and investment. Examples
include support to the regional credit bureau in Central America and the
first private credit bureau in Egypt, work on the legal and regulatory
framework in Kenya and Panama, and ongoing assistance toward creation of
a private bureau in Vietnam.
The Credit Bureau Knowledge Guide is available on IFC’s Web site
For paper copies, contact Ms. Nataliya Mylenko at email@example.com.