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Ab​out the Credit Bureau​​

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Last modified: 16/09/2021 02:04 PM |

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by: i:0#.w|bnmof\mohayazeed_jasni

Credit Bureau​​


What is Credit Bureau​​?


In order to assist the financial institutions in determining a borrower's credit-worthiness, the Brunei Darussalam Central Bank (BDCB) has, pursuant to Section 42A of the BDCB Order, 2010, established the Credit Bureau.

The Credit Bureau is a unit under the Regulatory and Supervision Department of BDCB. In September 2012, the Credit Bureau commenced its service to all licensed banks, finance companies and the Islamic Trust Fund in this country, who are data providers of the Credit Bureau. Subsequently, in September 2014, it launched the Self-Inquiry and Dispute Resolution (SIDR) service to the public.

 

Function of Credit Bureau​​


The key function of the Credit Bureau is to collect factual credit information, such as credit cards, cars, home, personal and education financing, from its data providers. The Credit Bureau then compiles and consolidates the information and present them in the form of a credit report.

NOTE: The Credit Bureau of BDCB DOES NOT APPROVE NOR REJECT a borrower's loan application. It also DOES NOT express any opinion, suggestions or recommendation about the credit-worthiness of the borrower in the credit report. Credit decisions are  entirely made by the financial institutions according to their internal risk assessment policies.

 

Prior to the establishment Credit Bureau​​

 

    • Inadequate information to make a sound lending or borrowing decisions
    • Information asymmetry
    • High level of delinquencies and bankruptcies
    • Potential fraudulent activity
    • No systematic arrangement of borrowers' personal records

 

With the establishment Credit Bureau​​


Impacts to lenders:

    • Sound credit lending decisions
    • Reduction of potential credit risks and losses
    • Efficiency in costs and time, in terms of loan processing
    • Stronger credit-risk management

Impacts to borrowers:

    • Fully-informed on overall credit commitments
    • To nurture a healthy credit lifestyle
    • Gain better incentives from prompt loan repayments
    • Improves bargaining power for the terms of credit 


Data Providers of the Credit Bureau​​


Financial Institutions:

All licensed banks, finance companies and Islamic Trust Funds in Brunei Darussalam.

Utility and Telecom Data Providers:

Utility data providers who submit "credit-like" services, particularly, telecom and utility companies.

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