Credit Information In the Bangladesh Financial System

The report examiness the condition of the credit information industry in Bangladesh and proposes a direction for future growth. Sugests a number of improvements:

• Increase coverage down to one lakh taka;
• Provide credit ratings of companies;
• Make the data used more timely;
• Extend the services to support trade credit;
• Replace the corporate veil;
• Return all decision authority to the commercial bank;
• Commercialise the operation to cover costs.

Recommends that the industry should broaden the availability of credit information to include trade credit and small businesses and shift the collection, processing, and provision of credit information from the central bank to the private sector. Concludes by calling for serious and sustained effort to stimulate the emergence of new credit information companies able to provide relevant data to the financial sector.