The Central Bank of Myanmar (CBM) has issued a license to Myanmar Credit Bureau Limited, allowing it establish a credit bureau in the country, according to a May 17 CBM announcement. Myanmar Credit Bureau, a joint venture between the Myanmar Bank Association and Singapore’s Asian Credit Bureau Holdings, will collect information on loan repayment histories and other information on borrowers and distribute the profiles to lenders such as banks and other non-bank financial institutions.
The move arrives a year after the CBM issued a regulations for credit-based loans and marks a step away from strict collateral requirements when applying for loans. With credit profiles and more borrower information available, lenders will be better able to evaluate the creditworthiness of potential borrowers and improve risk assessment procedures. Ultimately, it will enable many entrepreneurs and small and medium enterprises (SMEs) to qualify for loans.
“Establishing a credit bureau is a good move as it will help increase access to finance for borrowers and help lenders gauge whether they should extend the loan or not,” said U Aung Thein, chair the Myanmar Industrial Association and SME Development Committee under the UMFCCI.
Source: Myanmar Times