BB starts CIB automation work to give quick borrower info
Monday, 7 December 2009
FE Report
Bangladesh Bank (BB) is going to implement a project to provide credit information report of potential borrowers to banks within a minute, which now takes over a week.
The project for automation of Credit Information Bureau (CIB) of the central bank, launched Sunday, would provide real online service to the banks when they would seek information about the potential borrowers.
An Italian company CRIF will assist in the CIB's capacity building, under funds provided by the Department for International Development (DFID).
Senior business consultant of CRIF Vincenzo Resta said the project will be in operation in June, and manual system will also run in parallel with it for the next four months.
"The company will make the CIB a world-class credit bureau and it will be customised to suit the local context," he said.
He, however, cautioned that quality and performance of the system would largely depend on quality of information provided by the banks.
"We will sit with the technical people of the banks Wednesday to explain the whole thing and get feedback from them," he also said.
The online system will response within seconds and provide complete historical information of each contract as well as overall summary.
CRIF will also provide training to the central bank officials to run its operations smoothly, he added.
CRIF operations director Lamberto Barbieri said over 1,400 banks and financial institutions along with 20,000 companies in Europe and Americas use his company's solutions.
BB Governor Dr Atiur Rahman in the launching programme said the automation project is very important for expanding the CIB's capacity for storing, handling and delivering credit information.
"Timely availability of reliable credit information is very urgent in maintaining asset quality of the lending institutions. The online system will help Bangladesh Bank to become a digital central bank," he said.
Dr Atiur said the capacity of the existing CIB set up is already under heavy strain for responding to the current volumes of credit information request.
"Expansion in SME and agricultural lending will make handling of credit information unmanageable without expanding the CIB's capacity," he added.
BB Deputy Governor Nazrul Huda said the new system will help the banks to take lending decision quickly. The banks will adopt the new system very quickly, as it is not that complicated, he hoped.
Sonali Bank Managing Director SA Chowdhury said if the rural branches can also have access to the CIB, they can easily take the decision. It will save the time of the clients and officials.
Janata Bank Managing Director SM Aminur Rahman said the banks will have to improve their efficiency, as the central bank will no longer cater manual system.
Mutual Trust Bank Managing Director Anis A Khan said it will revolutionise the whole system, as decision can be taken very quickly.
"Banks and NBFIs head offices will be allowed to have access to the database 24/7, and our clients will be the ultimate beneficiaries," he said.
Bangladesh Bank (BB) is going to implement a project to provide credit information report of potential borrowers to banks within a minute, which now takes over a week.
The project for automation of Credit Information Bureau (CIB) of the central bank, launched Sunday, would provide real online service to the banks when they would seek information about the potential borrowers.
An Italian company CRIF will assist in the CIB's capacity building, under funds provided by the Department for International Development (DFID).
Senior business consultant of CRIF Vincenzo Resta said the project will be in operation in June, and manual system will also run in parallel with it for the next four months.
"The company will make the CIB a world-class credit bureau and it will be customised to suit the local context," he said.
He, however, cautioned that quality and performance of the system would largely depend on quality of information provided by the banks.
"We will sit with the technical people of the banks Wednesday to explain the whole thing and get feedback from them," he also said.
The online system will response within seconds and provide complete historical information of each contract as well as overall summary.
CRIF will also provide training to the central bank officials to run its operations smoothly, he added.
CRIF operations director Lamberto Barbieri said over 1,400 banks and financial institutions along with 20,000 companies in Europe and Americas use his company's solutions.
BB Governor Dr Atiur Rahman in the launching programme said the automation project is very important for expanding the CIB's capacity for storing, handling and delivering credit information.
"Timely availability of reliable credit information is very urgent in maintaining asset quality of the lending institutions. The online system will help Bangladesh Bank to become a digital central bank," he said.
Dr Atiur said the capacity of the existing CIB set up is already under heavy strain for responding to the current volumes of credit information request.
"Expansion in SME and agricultural lending will make handling of credit information unmanageable without expanding the CIB's capacity," he added.
BB Deputy Governor Nazrul Huda said the new system will help the banks to take lending decision quickly. The banks will adopt the new system very quickly, as it is not that complicated, he hoped.
Sonali Bank Managing Director SA Chowdhury said if the rural branches can also have access to the CIB, they can easily take the decision. It will save the time of the clients and officials.
Janata Bank Managing Director SM Aminur Rahman said the banks will have to improve their efficiency, as the central bank will no longer cater manual system.
Mutual Trust Bank Managing Director Anis A Khan said it will revolutionise the whole system, as decision can be taken very quickly.
"Banks and NBFIs head offices will be allowed to have access to the database 24/7, and our clients will be the ultimate beneficiaries," he said.