Credit and data providers can now share borrowers' info

02 Mar 2015 16:50pm
WINDHOEK, 02 MAR (NAMPA) – The Bank of Namibia (BoN) on Monday granted Namibian credit and data providers authority to share borrowers’ information and promote responsible financing in Namibia.
BoN governor Ipumbu Shiimi, who launched the first Namibia Data Sharing Alliance (NDSA) regulation, explained that the provision will enable credit providers to undertake effective credit risk assessment based on available credit history, where the borrower is able to negotiate for better credit terms based on his/her good credit history.
Shiimi said the launch of NDSA comes at a time when the Bank is in the process of implementing the regulatory framework for Credit Bureaus.
Credit Bureaus were gazetted in August 2014 to regulate the operations and conduct of credit bureaus in order to ensure that credit information sharing is carried out within the confines of the law.
The governor said credit providers in Namibia are now required to provide performance information to all registered credit bureaus.
He added that the provision is there to ensure that a complete picture of individual borrowers is obtained, and to enable comprehensive affordability assessments to be done with a view to curb over-indebtedness of customers.
“This is in line with the bank's mandate of enhancing and maintaining stability in the financial sector. Therefore, the broader objectives of the NDSA and the Credit Bureau Regulations are complimentary in nature,” Shiimi stressed.
He said the NDSA and the Credit Bureau regulations will greatly contribute to the realisation of the Namibia Financial Sector Strategy (NFSS)'s objective of enhancing access to finance and maintaining stability in the financial system.
The success of credit information sharing require a broad range of credit providers actively supplying data to the credit information system.
Shiimi encouraged all credit providers to take up membership with NDSA and be part of this initiative in order to ensure the realisation of meaningful credit information sharing in Namibia.
The NDSA was established by FinMark Trust (FMT) in collaboration with Namibian credit providers, regulators and the Ministry of Finance.