Credit Reference Bureau is a new phenomenon in Somalia’s financial industry since the collapse of the industry in 1991.
Somali Bankers Association’s current initiative for managing and reducing credit risk in the banking sector is to establish a successful Credit Bureau. This helps all the banks to access credit information within interoperable electronic platforms for the banks. It will also help to promote a healthy financing repayment culture in the market.
Why do credit bureaus matter?
Adequate, timely, accurate, and transparent credit data is required for proper risk management. By providing this data, Credit information providers, such as credit bureaus, support the resilience of financial institutions and enhance credit market efficiency.
