Western Hemisphere Payments Initiative

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Public Credit Registries Private Credit Bureaus
Partnership Experiences in Latin America
Matías Gutiérrez Girault The Western Hemisphere
Credit Loan Reporting Initiative (WHCRI)
Third Global Credit Reporting Conference Public
Policy Innovative Solutions for Emerging
Markets Rio de Janeiro, Brazil. October 21st
23rd, 2008
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Public Credit Registries (PCRs) are

• databases with information on borrowers of the
  financial system,
• operated by the central bank or bank
  superintendence,
• reporting is in general mandatory,
• have positive negative data,
• their primary purpose is bank supervision.
• They are also used to
• prudential regulation
• macroeconomic policy and control
• borrowers credit information

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PCRs in the WHCRI

• As from 2004 several PCRs have been reviewed
• Mexico SENICREB Banco de Mexico and R04 -
  CNBV
• Colombia Central de Riesgos - SFC
• Brazil SCR Banco Central do Brasil
• Peru Central de Riesgos por Saldos Central de
  Riesgos por Operaciones - SBSA
• Uruguay Central de Riesgos Crediticios - BCU
• Costa Rica Centro de Información Crediticia -
  SUGEF
• Trinidad Tobago -
• Chile Sistema de Deudores - SBIF
• Argentina Central de Deudores del Sistema
  Financiero - BCRA

2004
2005
2006
2007
2008
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Salient facts about reviewed PCRs
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PCRs and PCBs so far, absence of a unique
paradigm
only negative information sharing
Banks
Public databases
on-line reports, web service, batch files, etc.
/-
Banks
Public Credit Registries
Private Credit Buros
Other
Borrowers
Retail stores
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PCRs and PCBs so far, absence of a unique
paradigm
positive and negative information sharing
Banks
Public databases
on-line reports, web service, batch files, etc.
/-
Banks
Public Credit Registries
Private Credit Buros
Other
Borrowers
Retail stores
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Some conclusions

• In general there is no explicit partnership
  between PCRs and PCBs,
• they simply coexist.
• The way they coexist is diverse, but typically
  they dont interact
• PCBs service all the creditors (in some cases
  fragmented)
• sharing only negative, or negative and positive
  data
• without having access to PCR data
• PCRs service banks only
• shaped by diverse factors central bank/bank
  superintendence mandate, bank regulation, legal
  framework, structure of the credit market and
  other idiosyncratic factors

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Some conclusions

• PCR operators do not feel responsible for the
  development of the credit reporting system
• availability of reliable and complete credit data
  in the credit market
• they are happy as long as bank credit data is
  available in their repository,
• so that they can better supervise and regulate
  banks,
• and banks can
• take better credit decisions,
• more efficiently monitor their credit portfolio,
• comply with the banking regulation.

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Some conclusions

• PCBs do not feel threatened by PCRs,
• they are concerned about obtaining positive data,
  accessing public databases, the existence of a
  reasonable legal framework (I.e. habeas data
  law), etc.
• While PCRs do not seem to be key drivers or
  success factors for the development of the PCB
  industry,
• they can nevertheless be used to jumpstart the
  exchange of positive data through PCBs.

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• thank you for your attention
• mggirault_at_bcra.gov.ar