Myanmar Credit Bureau to be Operational in Two Years
Myanmar Credit Bureau to be Operational in Two Years
Myanmar Business Today, 21 Nov 2018
URL: https://www.mmbiztoday.com/articles/myanmar-credit-bureau-be-operational-two-years
Having been granted a license on May 17 of this year, Myanmar Credit Bureau Limited, a joint venture between the Myanmar Bank Association and Singapore’s Asian Credit Bureau Holdings, will be operational in the next two years, U Soe Thein, Vice President of Central Bank of Myanmar, said.
“It would be very beneficial if we have credit bureau. A credit bureau will be operational in the next two years. However, not having a bureau does not mean that financial services can’t lend,”he told Myanmar Business Today at the press conference at Central Bank.
On November 8, Central Bank started allowing foreign banks and branches to provide wholesale financial services to local corporations the same as local banks do.
However, local businessmen pointed out that not having a credit bureau that can provide background information of potential borrowers could delay granting loans.
“When you don’t have a credit bureau, banks need to do a background check themselves, and it’s called CDT. This causes delays,”U Soe Thein said.
Myanmar Credit Bureau Limited nominated one of Central Banks officials as a member on the board of directors, he added.
When the credit bureau is operational, banks will grant loans based on the information provided by the credit bureau instead of lending on collateral.
“It would be very beneficial if we have credit bureau. A credit bureau will be operational in the next two years. However, not having a bureau does not mean that financial services can’t lend,”he told Myanmar Business Today at the press conference at Central Bank.
On November 8, Central Bank started allowing foreign banks and branches to provide wholesale financial services to local corporations the same as local banks do.
However, local businessmen pointed out that not having a credit bureau that can provide background information of potential borrowers could delay granting loans.
“When you don’t have a credit bureau, banks need to do a background check themselves, and it’s called CDT. This causes delays,”U Soe Thein said.
Myanmar Credit Bureau Limited nominated one of Central Banks officials as a member on the board of directors, he added.
When the credit bureau is operational, banks will grant loans based on the information provided by the credit bureau instead of lending on collateral.