IScore 2702207 Presentation for Egyptian Banking Federation

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• Types and levels of Credit Bureaus.

• Highlight on how Credit Bureaus contribute to
  overall Governance /
• Risk Management frame work.

• Type of permissible non permissible
  disclosures.

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Banks and Non-Banks Credit Bureau
Consumer and Commercial Credit Bureau
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Credit Bureau function is to issue a
comprehensive report on borrowers ( individuals
small enterprises ) through collection of credit
information from lenders and public information
from public sources.
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• Integral part of a Sound Credit Judgement

• Credit is available to a larger segment of the
  population

• Effect on Borrowers Behaviour

• Countrys Investment Grade

• Getting Credit
• Credit Information 3 Indicators
• Public Credit Registry Coverage Number of
  Individuals Firms
• Adult Population
• Private Credit Bureau Coverage Number of
  Individuals Firms
• 
  Adult Population
• Legal rights of creditors and debtors 1
  indicator

Credit Information Index Egypt Are both
individuals and firms listed in credit registry?
Are both positive and negative date
distributed ? Does the registry collect credit
information from financial Institutions as well
as retailers and utilities providers? Are more
than 2 years of historical credit information
available for distribution ? Is Data on all
loans larger than 1 of Income per capita
recorded? Is it guaranteed by law that borrowers
can inspect their data?
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• 2005
• - Banking Monetary Law
• - Account Secrecy Law
• - CBEs Approval on Rules Governing
  Establishment of Credit Bureaus

• January 2006
• CBEs Board of Directors approved the
  rules regulations governing
• the Operations of Credit Bureaus

Changes covered the following - Data
Exchange (Banks / Mortgage Finance / Leasing /
Credit Bureaus) - Supervisory Regulations
- Compliance Rules - Penalties on Non
Compliance
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• Phase I - 3rd Quarter 2007
• Start up July 2007
• - Feeding of Information from Banks ltEGP
  30,000 for a comprehensive profiling on consumer
  borrowers EGP 1 to (unlimited) and SMEs with
  credit borrowing up to EGP 1 MM.
• - Feeding 800,000 records maintained at the
  Public Registry (CBE)
• for Credits gt EGP 30,000
• - Data Compiled under unified National ID
  
• Phase II - 4th Quarter 2007
• - Non Banking Financial Institutions
• - Mobile Operators

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• Phase III - Value Added Solutions ( Based on
• Analysis Market Needs )
• 2008
• - Credit Scoring
• - On combined profile of the customers
• 2009
• - Fraud Discovery
• - Identity Verification
• - SME Rating ( under study )
• - Risk Management Training Center ( under
  study )

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• Data exchange between Banks / Leasing Companies /
  Mortgage Finance Co.s and Credit Bureaus (
  Private Public ) without borrowers consent.
• Disclosure to lenders Only by written consent of
  the borrower.
• Right of borrowers to inquire on their own credit
  history.
• Disclosures by Act of Law.

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• Board Members are not allowed access to
  information on borrowers. Staff of the Credit
  Bureau ( on as need basis )
• Dual control access by designated employees to
  amend records.
• Disclosures due to permissible purpose authorized
  by borrowers such as credit application ,
  increase, annual review, guarantor etc
• Credit Bureaus Right to review lenders records
  on inquiries made.
• Regulatory audit reviews by CBE on lenders and
  the Egyptian Credit Bureau.
• Disclosure on borrowers are not permitted to any
  party not specifically authorized by rules
  regulations governing the operations of the
  Credit Bureau.
• Compliance Officer oversight in the Credit Bureau.

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• Thank You