Public Credit Registries as a Tool for Bank Regulation and Supervision

Girault, Matias Gutierrez ; Hwang, Jane

关键词: ACCESS TO CREDIT;    ACCESS TO FINANCE;    ACCOUNTING;    ADVERSE SELECTION;    AMORTIZATIONS;   

DOI  :  10.1596/1813-9450-5489
RP-ID  :  WPS5489

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper is about the importance ofthe information in Public Credit Registries (PCRs) forsupporting and improving banking sector regulation andsupervision, particularly in the light of the new approachembodied in Basel III. Against the backdrop of the financialcrisis and the existence of information data gaps, theimportance of complete, accurate and timely creditinformation in the financial system is evident. Both innormal times and during crises, authorities need a devicethat allows them to look at the universe of credits in adetailed and readily way. And more importantly, they need todevelop tools that exploit as much as possible theinformation therein contained. PCR databases containindividual credit information on borrowers and their creditswhich makes it possible to implement advanced techniquesthat measure banks' credit risk exposure. It allowsoptimizing the prudential regulation ensuring thatprovisioning and capital requirements are properlycalibrated to cover expected and unexpected lossesrespectively.It also permits validating banks'internal rating systems, performing stress tests andinforming macroprudential surveillance. In this respect, itis envisioned that the existence of a PCR will be a keyfactor to enhance the supervision and regulation of thefinancial system. Furthermore, the extent, accuracy andavailability of the information collected by the authoritieswill determine the usefulness of the PCR as part of theirtoolkit to monitor the potential vulnerabilities not only ona microprudential level, but also on a macroprudential one.