Key Component of Philippine Financial System Out by Q3 2007
Finally, our financial system will get a big boost with the introduction of a Credit Bureau. This is on the back of congress passing the Credit Information Systems Act. Here is the scoop from Inquirer.net.
THE Bangko Sentral ng Pilipinas (BSP) said a centralized credit bureau would likely be put in place in the third quarter of the year with Congress expected to approve the proposed Credit Information Systems Act (CISA) soon.
Two versions of the credit reporting bill, a reform deemed necessary to lower interest rates for good borrowers, have been passed in both chambers of Congress and would soon be elevated to the bicameral conference committee for consolidation.
There are numerous benefits that can be obtained with the establishment of a credit bureau. The obvious ones are reduction of credit fraud and, of course, the ease of taking out new loans. Imagine being able to take out a sizable loan without the current huge equity requirements. One of the major beneficiaries of this law will be the E-Commerce sector in the Philippines with the reduction of fraud. Hope this law passes soon!
