Michael Ritter, Head of Central Credit Register and Chair of Chair of the ESCB Working Group on Credit Registers, presented a paper on Central Credit Registers (CCRs) as a Multi-Purpose Tool to close Data Gaps. To download the paper click on this link: 2014-05-NecesidadesInformacionFinanciera-05
Background: A credit registry is one of the two main types of credit reporting institutions. Credit registries generally developed to support the state’s role as a supervisor of financial institutions. Where credit registries exist, loans above a certain amount must, by law, be registered in the national credit registry. In some cases, credit registries have relatively high thresholds for loans that are included in their databases. Credit registries tend to monitor loans made by regulated financial institutions.
One of the main differences in comparison with credit bureaus—the other main type of credit reporting institution—is that credit registries tend to be public entities. They are usually managed by central banks or bank supervision agencies. In contrast, credit bureaus tend to be privately owned and privately operated companies
More substantively, credit registry data are geared towards use by policymakers, regulators, and other officials. Against the backdrop of the financial crisis, many countries have made efforts to optimize the credit registry data so that they can be better used in macroprudential regulation and oversight. In comparison to credit registries, credit bureaus, as privately owned commercial enterprises, tend to cater to the information requirements of commercial lenders. Thus, they typically provide additional value-added services, such as credit scores and collection services.
Michael Ritter presented at the BIIA 10th Anniversary Conference the Legal Entity Identifier (LEI) concept. To download the presentation click on this link.
