CIB was established primarily to function as the central repository of credit data for the purpose of minimizing the problem of asymmetric information between the Lending Institutions and the borrowers in the banking sector/credit market thus helping lending Institutions to make informed credit decisions and minimize credit risks associated with Non-Performing Loans (NPL)
It collects, compiles and consolidates loan/credit data for the purpose of assessing their creditworthiness of borrowers. The Lending Institutions provide information about loan repayments and other relevant information of borrowers to the CIB which are consolidated by CIB database system into separate files on every individual customer or business. The credit data/credit history so compiled on borrowers is shared with the lending institutions to help them minimise credit risks by avoiding bad clients
CIB’s primary sources of sustenance is the revenues generated from the sale of Credit Information Reports and subscription fees collected from the lending institutions for Value Added Products (VAPs)
CIB is an autonomous financial infrastructure company registered under the Companies Act of Kingdom of Bhutan, 2000, licensed by the RMA in December 2015 and Ministry of Economic Affairs in February 2016
CIB is regulated and supervised by the RMA but it is not a financial institution. It is a financial infrastructure that supports financial stability and credit market efficiency through providing credit assessment tools that help banks and lending institutions improve their credit risk management systems thus improving their asset quality and promoting discipline in the credit market
The total authorized capital of CIB is Nu.100 million, out of which the total paid-up capital is Nu.25 million. Out of the total paid-up capital, Ministry of Finance owns 44% (Nu.11.00 million) and 8 Financial Institutions own 56% (Nu.14.00 million). 44% paid-up capital initially held by RMA was transferred to MoF on 25 September 2017
A Credit Information Report (CIR) is a detailed record of an individual's or a company's credit history. It is also commonly known as a credit report. The report provides information about the creditworthiness of the entity and is used by lenders, such as banks and financial institutions, to assess the risk of lending money or extending credit to the individual or business
Credit History: A detailed account of the individual's or company's borrowing and repayment activities. This includes information on each credit account, including the date opened, credit limit or loan amount, current balance, payment history, and any late payments or defaults.
Personal Information: This includes the individual's or company's name, address, contact details, and other relevant identification information.
Credit Summary: An overview of the individual's or company's credit accounts, including credit cards, loans, and other forms of credit.
Credit Score: A numerical representation of the individual's creditworthiness, based on various factors such as payment history, credit utilization, length of credit history, types of credit, and new credit.
Inquiries: A list of entities (such as lenders or credit card companies) that have accessed the individual's credit report. Multiple recent inquiries may suggest an increased risk of financial instability.
Public Records: Information about any bankruptcies, liens, or judgments against the individual or company. This information can significantly impact creditworthiness.
Dispute resolution process lays out the mechanism by which a borrower/consumer can address disputes and issues pertaining to incorrect information and discrepancies contained in Credit Information Reports
Improve access to credit for Micro, Small & Medium Enterprises (MSMEs).
Minimize information asymmetry between borrowers & lending Institutions.
Reduce costs to serve through functioning as the single point of inquiry for credit information.
Aid in improving credit risk management practices of lending institutions.
Reduce non-performing loans through aiding credit decision making process.
Facilitate Regulators to manage consumer and business indebtedness, and ensure economic stability.
Facilitate objective assessment of creditworthiness of borrowers through sharing factual credit history/data on credit exposure of borrowers.
Promote better credit terms for financially responsible borrowers.
Create a healthy credit culture through promoting responsible borrowing.
