Kayode Ekundayo
16 April 2009
A consortium of 11 Nigerian banks have established a new credit bureau-Credit Reference Company (CPC) for the purpose of generating and supplying credit information on borrowers in the consumer and commercial segments.
The banks are Access bank, Bank PHB, Diamond Bank, First Bank, First City Monument Bank, Guaranty Trust bank, Intercontinental Bank, Stanbic IBTC bank, Standard Chartered Bank, Union Bank and UBA According to the company's managing director, Tunde Popoola, the need to have financial structure providing information on borrowers and their history became imperative especially after the consolidation exercise in the banking sector when huge fund was injected into the economy.
The Central Bank of Nigeria (CBN) had in October 2008 issued a guideline on the establishment of credit bureau in the country with a minimum capital requirement of N500 million.
A licensed credit bureau, according to CBN is mandated to collect information on the background and credit history relating to the commitments of persons, enterprises and other organisations, in order to determine their overall debt exposure and repayment behaviour.
Popoola said CRC is ready to carry on with the mandate as it has secured approval in principle from the apex bank. He also disclosed that the bureau has N1 billion capital based and that CPC is awaiting the CBN's inspection team Popoola said in order to ensure a professional hint at operations, implementations, technical partnership was sought and acceded by Dun and Bedstreet which has over 160 years experience in credit bureau set up, installation and operations especially in emerging economies.
"D&B involvement is of two folds. It is an equity investor in CRC. Its also a consultant in the areas of consumer and commercial credit bureaus. Its worldwide network is designed to yield business information that would allow CRC's customers gain access to the world's largest global commercial business information database which guarantees the highest possible quantity", he said.
Popoola said CRC is out to service institutions in the Nigerian banking industry, insurance, mortgage and microfinance sectors He said the absence of an institution to provide credit history on individuals and corporate bodies has restricted access to credit to a few.
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BAD IDEA BANKS GUARDING THE CHICKEN HOUSE, AND THEY BEING THE WOLF. BORROWERS WILL NEVER HAVE A CHANCE OF PRIVACY AND INDEPENDENT CHOICE, OF DOING BUSINESS WITH ONE BANK OVER ANOTHER, DUE TO POSSIBLE CONFLICT AND FEAR. WORST IDEA. CARTEL LIKE CEMENT, SUGAR, UREA, OIL, NAME IT BAD IDEA!!!!! TONY