The State Bank of Pakistan (SBP) issued instructions on February 18, 2021 to all Banks, DFIs, MFBs, NBFCs and Modarabas regarding quality data reporting in the Electronic Credit Information Bureau (eCIB). These instructions have been issued after conducting an in-depth assessment of the mechanisms put in place for eCIB data feeding, compilation, validation and reporting by the member Financial Institutions (FIs).
The eCIB was established by SBP in December, 1992. The scope and activities of eCIB are governed under the provisions of Banking Companies Ordinance (BCO), 1962. A Credit Information Bureau (CIB) is an organization that collects and collates credit data on borrowers from its member financial institutions. The financial data is then aggregated in system and the resulting information (in the form of credit reports) is made available online on request to contributing member financial institutions for the purpose of credit assessment, credit scoring and credit risk management. The primary purpose of this database is to enable the FIs to know the credit history of their prospective customers thus enabling them to make informed and timely lending decisions. Around 97 banks / DFIs / MFBs etc. are member of the eCIB.
Through these new instructions, all the member FIs have been advised to ensure that the financial and non-financial data should be Accurate, Sufficient, relevant, and collected on a systematic basis from all reliable, appropriate, and available sources and update on a continuous basis and reported to eCIB. The FIs have also been advised to retain the data safely for at least five years or otherwise specified in the relevant law/regulations issued by SBP from time to time.
The member FIs have also been advised to develop Standard Operating Procedures (SOPs) for eCIB data feeding, compilation, validation, and its reporting duly approved by the President/ CEO. Moreover, FIs have been advised to establish a proper complaint and redressal mechanism for resolving the complaints related to misreporting in eCIB lodged with either bank/ SBP/ BMP or court. Furthermore, the member FIs have been advised to create awareness of the rules & regulations of eCIB related to negative reporting (reporting of overdues/late payments, write-offs/waivers, etc.) and its implication among their customers to avoid unnecessary complaints/ legal proceedings.
Additionally, the FIs have been advised to designate a Senior Level Officer for ensuring quality data reporting in eCIB and submit the details of the officer with SBP.
The FIs have been warned of strict penal actions upon failure to comply with the instructions.
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