Paper

Credit Information Bureau in Nepal

The objective and the various directives on Credit Information Bureau
Download 24 pages

This presentation begins by providing information on the following:

  • Overview of Nepalese economy for the year 2002-03;
  • Outlook for Nepalese economy for the year 2003-04;
  • Overview of Nepalese financial sector with financial indicators for the year 2003-04.

The presentation then discusses the following information about the Credit Information Bureau (CIB) established in Nepal:

  • Provision for establishment of CIB was incorporated in NRB Act, 2002;
  • It was established:
    • In 1989 under Bankers Association of Nepal;
    • With the objective of maintaining credit information as well as blacklisting defaulting borrowers;
    • With the capital injection all financial institutions along with the Central Bank.

The presentation also discusses the following directives on credit information and blacklisting:

  • Borrower's credit information, which is compulsory;
  • Borrower's detailed profile and information at the time of approving credit, which is required;
  • Criteria for blacklisting of borrowers;
  • Criteria for removal of borrowers from blacklisting.

The presentation concludes that the establishment of CIB and the directives on blacklisting have proved to be effective in controlling the level of non performing loans.