ISLAMABAD: The Senate on Friday passed the Credit Bureaus Bill, 2015 aimed at providing comprehensive legal and regulatory framework for incorporation and functioning of credit bureaus in the country unanimously.
Minister for Finance and Revenue Mohammad Ishaq Dar moved the bill in to the House.
Explaining importance of the bill, it has been stated that Credit Bureaus throughout the world have their eminence and impact on financial decisions.
Lending and investment assessments by financial institution particularly by banks are crucial elements for healthy credit culture in the country.
Credit bureau provides information for objective examination of credit standing of the borrowers. In Pakistan, a couple of private credit bureaus started their functions without any legal framework or regulatory requirements.
This raised concerns for SBP especially due to sensitivity of banking information being maintained by these bureaus. So the proposed law provides comprehensive legal and regulatory framework for incorporation and functioning of credit bureaus in Pakistan.
The law will also provide a platform for accuracy in risk prediction. This would create rapid business benefits including increased array of credit products, improved collection rates, reduced net bad debts and low operating costs.
The strong credit risk management culture would result in healthy growth of credit, reduce risks of default and enable lending to new segments of borrows. These measures would stabilize financial system and contribute to sustainable economic growth in the country.
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