Credit rating is still on track to start during 2014, though delays in gathering data, particularly from small enterprises, are still being faced, industry sources said last week.
The Central Bank’s department of financial institutions supervision, with technical support from a Singapore credit corporation, is preparing for the emergence of a credit bureau or rating agency that could offer loans without collateral.
But gathering nationwide data, especially for SMEs, is lagging, said one Central Bank official who requested anonymity. “The industry needs the right information to build trust,” he said.
Local insurance firms have been offering credit guarantees since May, providing recommendations to assure bank loans, making appraisals and guaranteeing to reimburse 50 percent of the loan in the event the customer cannot repay. Meanwhile, domestic banks recently raised savings interest rates from 8.7pc to 10pc on fixed deposits with the aim of increasing money supply, the official said.
U Kyaw Lwin, director of Treasure Bank, said the bank’s credit department appraises the property of loan applicants because of a Central Bank policy that non-performing loans (NPL) should not comprise more than 3pc of their portfolio. “Our bank has restrictions on lending policy and collateral because we worry about NPL,” he said.
U Thant Sin, CEO of United Amara Bank, said banks were unlikely to share information with each other because they had yet to adopt detailed procedures issued by the Central Bank.
U Win Myint, secretary of parliament’s Banks and Monetary Affairs Development Committee, said the committee was ready to advise on the Central Bank’s new policy on credit once the proposals were available.
Source: MYANMAR TIMES