It has been announced that Jamaica is to get a second credit bureau.
On Tuesday April 10, Finance Minister Dr. Peter Phillips, issued a licence under the Credit Reporting Act to CRIF NM Credit Assure Limited.
CNM-CAL is a joint venture between ILLUMINAT Jamaica Limited, a wholly owned indirect subsidiary of Neal and Massy Holdings and CRIF S.P.A., an Italian registered entity which provides credit information and related value added services in several European jurisdictions.
The Finance Minister has given CNM-CAL 12 months to commence operations.
During this period it is anticipated that the credit bureau will establish reporting relationships with eligible credit information providers and complete the setup of operations.
Eligible credit information providers include commercial and merchant banks, building societies, credit unions, insurance companies, the Students Loan Bureau and hire purchase companies among other lending entities prescribed under the Credit Reporting Act.
Creditinfo Jamaica was last month issued the first licence to operate a credit bureau in Jamaica.
From a macroeconomic point of view, credit bureaus can bring about higher growth rates for businesses and individuals, and therefore the economy, through an increase in credit lines to those who wish to borrow.
Credit bureaus also allow for greater information sharing which allows lenders to review how much and at what rate they lend to borrowers. Good borrowers should not be penalised as a result of there being a large number of bad borrowers - as is the case without a bureau
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