FORGETTING to pay a loan instalment may soon cause more problems than just an unpleasant phone call from a bank or other financial institution. Such faults are added to the credit history of the client, and such negligence may prevent borrowers from getting new loans, leasing contracts or other financial services in the future once two of the existing registers effectively merge.
“The project to interconnect the registers is a logical outcome of efforts for a comprehensive look at the credit profile of a client from the viewpoint of all the credits provided to that client, his credit history and information about his payment discipline within all relevant financial
institutions in Slovakia,” Ján Budinský, the legal representative of CRIF – Slovak Credit Bureau, the company administering the banking and non-banking credit registers in Slovakia, told The Slovak Spectator. “For the time being the interconnection is in the phase of final preparations.”
Under this project, the Banking Credit Bureau (SRBI) and the Non-Banking Credit Bureau (NRKI), which contains information about the obligations and relationships of clients and their creditors including banks and other financial institutions participating in the NRKI, will interconnect, Budinský explained. While members of the first register are exclusively banks, the NRKI contains information about clients of leasing and instalment-purchase companies.
The interconnection will serve current members of the registers, i.e. primarily the banking sector, leasing companies and companies providing instalment loans, according to Budinský, who added that the Non-Banking Credit Bureau may be extended by the addition of new sectors in future.
“The significant benefit for participants of the interconnected credit registers is the opportunity to assess the credibility of a client across the whole financial market,” said Budinský, adding that this will provide a trustworthy assessment of real riskiness linked with a potential provision of finances to the client. “In general, interconnection of registers brings higher transparency to the credit market. Making information about the payment discipline of clients available to other sectors will reduce the information imbalance on the side of credit subjects and thus create a bigger pressure to increase the responsibility of clients from the viewpoint of fulfilling their financial obligations.”
According to Budinský, the interconnected register will enable the clients of banks and other financial institutions to show their credit profile and thus their ability to be a responsible partner. The client, he said, could also use this to try to negotiate better terms for loans or other financial products.
The Slovak Banking Association (SBA) has welcomed the imminent interconnection of the registers.
“We believe that this step is positive for everybody,” Monika Klobušická, the SBA’s spokesperson, told The Slovak Spectator. “If the client settles his obligations to non-banking companies and the bank has this information, certainly this is to the benefit of the client when his credibility is assessed by the bank.”
The Association of Leasing Companies (ALS) regards the interconnection as a significant event on the financial market.
“The biggest added value of the joint register for leasing companies is sharing of data and information also about bank clients and vice versa,” Roman Ganobčík, chairman of the ALS committee for risk management and prevention, told The Slovak Spectator, stressing that the register will contain positive as well as negative information about the payment discipline of clients, helping banks and leasing companies significantly when approving loans or leasing contracts for their clients.
Marián Tibenský, the ALS secretary-general, explained to The Slovak Spectator that it was the ALS that initiated the interconnection of the registers several years ago, and that said it was necessary to search for a legislative as well as a technical solution together with the SBA. Later, the National Bank of Slovakia also supported the idea and a revision to the Bank Act allowed it to happen.
According to Budinský, interconnection of the credit registers with SOLUS, a register of non-payers sometimes also called the negative register, is not currently being prepared.
Zuzana Krajčovičová, secretary of SOLUS, specified for The Slovak Spectator that while cooperation between SOLUS member-companies from various economic sectors has been one of its basic principles, interconnection of other registers in Slovakia does not have any impact on SOLUS’ operation.
“SOLUS as an association of corporate entities carries out its operation as an independent subject,” Krajčovičová told The Slovak Spectator. “The principle of its operation is that only companies which are members of the association provide data to it and send inquiries to it.”
25. Mar 2013 at 0:00 | Jana Liptáková