Myanmar Credit Bureau Limited (MMCB) on December 30 launched Myanmar’s first credit bureau to support financial institutions and consumers in Myanmar by implementing a credit reporting system to promote responsible lending.

The bureau has been centralizing information gathered from financial institutions in Myanmar about their borrowers since its soft launch in November. This includes borrowers’ personal and contact information, credit accounts and repayment history as well as information on any collateral listed to obtain a loan. MMCB does not collect information on borrowers’ net worth, assets or bank deposit amounts.

With this information, the bureau provides credit reports on individuals or corporates to help financial institutions make better lending decisions and lower the risk of defaults. Borrowers, in turn, should expect faster and more competitive services from lenders.

“For the first time in the country’s history, we can ensure that customer borrowing risk is properly managed through credit-information sharing between financial institutions,” said U Zaw Lin Aung, chair of MMCB.

“Borrowers who are responsible for their financial commitments will have a good credit history which will enable them to receive new loans more quickly,” he added.

MMCB, which received its license from the CBM in May 2018, currently has over 220 potential members including national and local banks, foreign bank branches, and non-bank financial institutions. It plans to widen membership and expand its product and service offerings to include credit scores and data analytics reports over the next two years.

The bureau is a 60:40 joint venture between MB Investment, a company formed by members of the Myanmar Banks Association, and Singapore-listed Credit Bureau Asia’s wholly-owned subsidiary NSP Asia Investment Holding.

Source: The Myanmar Times