Over 100 delegates representing credit reporting industry and regulators from 8 countries (Azerbaijan, Belarus, Georgia, Kazakhstan, the Kyrgyz Republic, Tajikistan, Ukraine and Uzbekistan) converged in Azerbaijan in April of this year for the official launch of the Association of Credit Information Providers (ACIP) of Eurasia. This landmark gathering hosted by IFC’s Finance, Competitiveness and Innovation (FCI) Global Practice with the donor support of SECO, marked the creation of a regional association, that strives to strengthen credit reporting practices and cross-border data sharing to facilitate credit infrastructure development and contribute to regional integration. Similar initiatives already exist in other regions (i.e. ACCIS, ALACRED, BIIA) where credit registries and bureaus from member countries promote the dissemination and adoption of new practices, technological solutions and global trends. Through collaborated efforts, the newly-founded ACIP seeks to achieve just that.
Recognizing the instrumental role of credit reporting systems, today’s conference participants emphasized the growing significance of the industry for ensuring access to finance, enhancing financial stability and supervisory response framework for the financial sector, bolstering risk management practices. Although different economies are maturing at a different pace, the need for an efficient, reliable and competitive credit reporting infrastructure is especially acute in developing countries.
Unlike developed markets, where lending environments are relatively benign and credit reporting has a long tradition, developing countries lack institutional stability and are often burdened with information asymmetries, costly credit screening and evolving creditor rights. By bringing together both credit bureaus and credit registries spanning from Belarus to Tajikistan, the ACIP will offer an advanced platform where members will tap into each other’s expertise both from the regulatory and implementation perspectives, share innovative technological solutions and modern approaches to respond to the challenges imposed by digitalization.
To read the full story click on this link: ACIP Photo report
Source: IFC (World Bank Group)