Myanmar Credit Bureau Limited (MMCB) on December 30 launched the country’s first and only modern credit bureau.
MMCB, which is licensed by the Central Bank of Myanmar (CBM), will provide Myanmar with a modern credit reporting system that will enable lenders to expand the financing options available for individuals and businesses. It will also encourage more responsible lending in the country. The bureau has been centralising 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 produces 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. 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. Credit Bureau Asia, which also operates the sole credit bureau in Cambodia, made its debut on the Singapore Exchange in December 2 at 93 cents per share. The company’s shares closed at $1.17 each before the announcement.
Source: Myanmar Times