eCIB reports to show 2-year credit history from July

KARACHI: The State Bank of Pakistan (SBP) would include two-year history of negative/overdue information for consumer/individual borrowers’ in its Electronic Credit Information Bureau (eCIB) reports starting July 2021, to get aligned with international practices.

Currently, the eCIB report reflects negative/overdue information for consumer/individual borrowers’ for one year.

The SBP’s eCIB collects and collates credit data on borrowers from its member Financial Institutions (FIs). The financial data is then aggregated in system and the resulting information, in the form of credit reports, is made available online to the member FIs for the purpose of credit assessment, credit scoring and credit risk management.

The major purpose of this database is to enable the FIs in knowing the credit history of their current and prospective customers thus enabling them to make informed and timely lending decisions.

The decision was undertaken by the SBP to align its eCIB policies with international practices and to meet the Ease of Doing Business Survey (EODB) requirement of displaying at least two years history in the eCIB reports.

It is very important to note that this change would be adopted on prospective basis and would be effective from July 2021 onwards. Accordingly, any default, delay in payment, etc prior to July 1, 2021 would continue to be reflected in the credit report of the customers only for one year. However, defaults, delayed payments, etc after July 1, 2021 would be shown on the credit reports for two years.

All the member FIs have been advised to bring the contents of this policy change in the knowledge of their existing and potential customers.

Besides, the member FIs should also ensure upfront disclosure to their current and potential customers regarding the eCIB reporting requirement and its implication ie (the reflection of overdue/late payments/write off/waiver, etc) in eCIB reports after settlement of their liabilities.