[ 2011-06-08 ]

Licensed Credit Reference Bureau woos banks
A leading provider of global business information,
Dun and Bradstreet is promising a drastic
reduction in banks’ default rates should it get
their full cooperation.

The firm which has secured a provisional license
from the Central Bank to operate a credit
reference bureau, is preparing to begin full
operations in September.

Banks have often cited the high loan default rates
as a major factor influencing the high interest
rates regime.

But Dun and Bradstreet Chief Executive, Miguel
Llenas tells Joy Business they can help the
situation.

He said if the bureau collects all the information
it needs from the banks by the end of this year,
the loan default of 14 per cent will reduce to
eight per cent in three years.

“That is going to happen because the people who
have not paid today, [their] reports are going to
be on the market and for them it is going to be a
little bit more difficult to get credit so they
will go back to the bank and pay – this is my
experience in over 25 countries – people start
paying loans that they didn’t pay before,” he
explained.

Mr. Llenus says banks will now be able to make
informed decisions with quality and accurate
information.

Dun and Bradstreet which is currently listed on
the New York Stock Exchange presently operates in
over 200 countries and manages the world’s most
valuable commercial database with information on
over 100 million business entities.

Source - MyjoyOnline

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