THE NEWS Saturday, April 18, 1998 “Credit information to be computerized”

KARACHI: The State Bank of Pakistan (SBP) will consider centralized computerization of the entire credit information system of banks so that such information is easily accessible both for the central and commercial banks.
The proposal was discussed at a meeting of the State Bank of Pakistan (SBP) Credit Information Bureau (CIB) here on Friday, chaired by Khalid Mahmood Salim, Executive Director SBP and attended by representatives of commercial banks and members of FPCCI.
A private Pakistani company DATACHECK, a subsidiary of Brinks, made a presentation for such a system which would centralize data of different banks.
This information will be managed by the company and banks will have access to it through a software.
It was disclosed that the central bank still does not have timely data from banks on loans of below 0.5 million, therefore, the induction of such a centralized system would improve credit information at the SBP as well as in the banking sector.
The meeting also discussed the issue of directors in a group of companies where the default has taken place and legal problems that exist in such a situation.
It was also decided that charge on the entry of default for individuals should be increased from Rs. 10 per entry to Rs. 30 per entry while in the case of a group the rate would be Rs. 50 per entry of default.
The meeting for the first time was attended by a three-member committee of FPCCI which was formed as a result of similar demand by the president FPCCI during a meeting with SBP governor Dr. Muhammad Yaqab at Federation House last month. The governor had announced that the State Bank will set up a committee comprising officials of SBP, Banks, and FPCCI to evolve a mechanism to improve the credit information system.
The committee will define “defaulters”, draw up the proforma for collecting information and decide about the frequency of updating the information

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