Credit information system in place by yearend, says SEC head

MANILA, Philippines - The government is eyeing to put in place an extensive credit information system by the end of the year, now that the implementing rules of the Credit Information System Act (CISA) have already been drafted, a ranking official said yesterday.

In a chance interview, Securities and Exchange Commission chairman Fe Barin said the SEC has drafted the rules to implement the law, which are now up for review by the Congressional oversight committee.

“Hopefully, it will be operational this year,” Barin said.

Once the rules have been reviewed and finalized, Barin said the board of directors of the new corporation would be reconstituted. After this, the Department of Budget and Management (DBM) would release the funds for the new entity.

She expressed hopes the whole process would be completed this year.

Republic Act 9510 or the CISA seeks to provide a comprehensive and centralized credit information system for the collection and dissemination of fair and accurate information relevant to, or arising from, credit and credit-related activities of all entities participating in the financial system.

The system will directly address the need for reliable credit information concerning the credit standing and track record of borrowers. An efficient credit information system will also enable financial institutions to reduce their over-all credit risk, contributing to a healthier and more stable financial system.

The law also calls for the creation of the Credit Information Corp. which would act as a central registry or central repository of credit information, and to provide access to reliable, standardized information on credit history and financial condition of borrowers.

As provided by the law, the SEC chairman shall be the chairman of the board of directors of the corporation.

Barin expressed hopes that the credit information entity would achieve its goal of improving access to credit in the country and help boost the economy.

Under the law, banks, quasi-banks, their subsidiaries and affiliates, life insurance companies, credit card companies and other entities that provide credit facilities are required to submit basic credit data on a regular basis to the new corporation.

The new corporation is also required to regularly collect basic credit data of borrowers at least on a quarterly basis to correct or update such data.

The law provides that the corporation may also access credit and other relevant information from government offices, judicial and administrative tribunals, prosecutorial agencies and other related offices.

Barin expressed hopes that the Corporation Code and the Securities Regulation Code would also be strengthened through amendments by Congress.