AUTORITI Monetari Brunei Darussalam (AMBD) signed a memorandum of understanding (MoU) with Telekom Brunei Berhad (TelBru) to further enhance credit-risk management by equipping lenders with utility data as an alternative form of credit information from providers of ‘credit-like’ services such as telecommunications services.
The objective of the MoU is to establish a foundation of cooperation and collaboration in relation to the submission of customers’ credit information to the Credit Bureau at AMBD.
“At this juncture, the signing of the MoU will facilitate the country’s commitment in building a more conducive business environment – in particular, improving the ease of getting credit. The inclusion of the information from telecommunication/utility providers into the Credit Bureau’s repository will expand the depth of credit information in terms of its scope and accessibility,” AMBD said in a statement.
The deal was inked last Tuesday at the the Ministry of Finance Building, Commonwealth Drive, Bandar Seri Begawan.
Signing on behalf of AMBD was Hajah Nurliati binti Haji Md Idris, Acting Deputy Managing Director, while TelBru was represented by Nurbahriah Eliza binti Abdullah, Chief Financial Officer of TelBru.
The signing ceremony between Autoriti Monetari Brunei Darussalam (AMBD) and Telekom Brunei Ber-had (TelBru). – AMBD
Witnessing the signing ceremony was Hajah Rashidah binti Haji Sabtu, Acting Assistant Managing Director of AMBD and Hajah Noorhayati binti Dato Haji Abdullah, Deputy Chief Financial Officer of TelBru.
The ceremony was also attended by senior officials from both AMBD and TelBru.
The utility data serves as value-added information to help evaluate the risk of lending to a customer, and further enhancing the risk assessment of consumers who lack a credit history as well as those who already have little credit history, the AMBD statement said.
Additionally, it serves as an excellent proxy for willingness and ability to repay, particularly because utility customers are typically billed monthly or at regular intervals that resemble repayment cycles used by many lenders. The reporting of both timely and delinquent payment information would prompt customers to establish and maintain good credit or payment history that will ultimately enable them to greater access to credit, AMBD noted.
The Credit Bureau is a unit under the Regulatory and Supervision Department of AMBD and has been operational since September 10, 2012.
Its main function is to collect, compile, consolidate and disseminate factual information in relation to the creditworthiness, or the ability to meet debt obligations of individuals or commercial entities.
It is generally information sharing arrangements that will help reduce the problems arising from asymmetric information in the credit market, AMBD said.
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