Da Afghanistan Bank (DAB) extremely satisfied with Creditinfo’s Public Credit Registry System

DABCreditinfo recently designed a system to record and analyse credit information for Da Afghanistan Bank (DAB). The new system was implemented in December 2013, less than 9 months after the tender organised by the Central Bank of Afghanistan (in cooperation with the World Bank, International Finance Corporation (IFC) and Harakat Organization) was won by Creditinfo.

Director General for PCR Department of DAB, Mr. Nesar Ahmad Yosufzai recently stated “PCR is extremely satisfied with the implementation of the PCR project to date.  The PCR system reduces risk for the banks, enhances loan data quality, and accelerates the process in granting loans whilst maintaining healthy competition.

We believe one of the contributing factors to the successful implementation of the project is the continued excellent working relationship we have with Creditinfo.  In the beginning, there were a number of productive working sessions which Creditinfo carried out in Kabul with the DAB teams, enabling an effective and efficient implementation process. Since the launch in December, Creditinfo have continued their effective support, ensuring the smooth running and management of the PCR.”

In the past decade, great progress has been made in the banking sector in Afghanistan, however the public still faced challenges when getting loans due to a lack of a clear framework for the provision of loans.  In response to resolving this situation, the Central Bank established the PCR system for credit reporting, to provide improved and quicker loan facilities whilst protecting banks and public investment.

DAB has called upon all the commercial banks to use the system to effectively manage loans and in turn, improve the banking system.  Each customer applying for a loan from a financial institute in Afghanistan must register in the PCR system.

Businesses, properties and credit histories of those customers who seek loans, are registered through the PCR system and shared with the banks and other financial institutions. This system is helping financial institutions including banks and money exchangers to have enough online information about the customers and their guarantors to make better informed decisions.  The system is also paving the ground for banks to embrace economic development and ensure the safety of public and bank assets throughout the country.

In line with these developments, the PCR team believes that usage of this system will significantly reduce interest rates in near future.

Creditinfo would like to affirm their pleasure in being able to transfer knowledge and experience to DAB and to be able to contribute to the establishment of stable financial sector in Afghanistan.

During the course of the last three years, Creditinfo have won five international bids to implement Credit Bureau solutions, with combined values exceeding 10 million US Dollars. Creditinfo has vast experience in the Credit Bureau business and in managing Credit Bureau projects in numerous countries.