A service to provide background checks for lenders is finally going to open in Myanmar – Myanmar Credit Bureau Limited, MCBL.
Over the last three years a lot of effort has been expended to achieve this important milestone. Loan facilities already had a boost earlier this year in November, when the Central Bank of Myanmar (CBM) authorised banks from overseas to offer wholesale financial services. Clearly, the availability of a credit bureau will make loan authorisation faster, perhaps with preferential rates for those with a good credit score. The ranking of Myanmar in the “ease of doing business” global listing will also receive a boost.
The bureau licence is shown on the CBM website, Myanmar Credit Bureau Limited 17.5.2018 No. (2), Sibin Road, Yankin Township, Yangon. Banks are applauding the news, stressing that loans are already being provided yet this will surely add to the growth of loan facilities available, adding that decisions will arrive sooner because background checks will be easier. It was in 2017 that the Directorate of Investment and Company Administration (DICA) signalled their approval with the proviso that data collected is also sent to the MCB.
The agreements were signed by MCBL with Equifax New Zealand Services and Solutions Ltd. There will be training for staff of the Credit Bureau, with also resources from the CBM. This is expected to take 12 months, so do not expect the bureau offices to open immediately.
MCBL has a 60 percent holding from the Myanmar Banks Association, and 40 percent from Asia Credit Bureau Holding Company, Singapore. Mr Khin Maung Aye is Chairman of the Myanmar Banks Association (MBA) and current Chairman of the Co-operative Bank PLC (CB Bank), which is one of the key banks in Myanmar’s private commercial banking sector.
One bank Director echoed the applause adding that the news was “monumental”.
Myanmar has the lowest of loan totals across the region. The arrival of this service will boost to new levels the growing economy – that has the highest annual growth forecast in the region.
The news was also welcomed by the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI). The joint general secretary U Aung Kyi Soe said “Lenders can assess the risk of providing loans to SMEs based on the information provided by the credit bureau, said of the UMFCCI. The credit bureau will contribute to banks. Our fellow ASEAN countries have also established successful credit bureaux”
FocusCore opened in Myanmar to help companies become established here and our services have grown to provide a full range of corporate services. We are delighted to see this development that will be of value to existing and new companies in Myanmar. Our extensive network of contacts covers Government and Commercial Sectors, allowing us to offer you efficient and informed guidance to facilitate your profitable company operations in Myanmar. It is not unreasonable to predict this credit scoring service will expand to cover many more in the country, boosting buying power across the board. Come to Myanmar now and see how this growing market can be a positive expansive step for your company and investment.