Consulting Services to Improve Data Utilisation of the Credit Reference System by Participating Institutions and the Bank of Uganda

In December 2004, Bank of Uganda (BoU) formulated a Policy Paper for the Establishment and Operation of Credit Reference Bureau (CRB) Services for supervised financial institutions in Uganda. BoU licensed only one provider, due to the small size of the Ugandan credit market at that time.


At the end of 2012 BoU prepared a further Policy Paper to govern the Future Structure of the Credit Reference System. The Policy Paper allowed licensing of new CRB providers. Thus a second CRB, Metropol Uganda Ltd., has recently been licensed and is currently setting up its operations in Uganda.


To optimise the benefits provided by the system, BoU has, in consultation with PIs, made efforts to determine how the utilisation of the credit reference system can be further strengthened. Through this consultation process, three major areas of potential gains relating to improved usage of the system by key groups of stakeholders have been identified:

  • Improved utilisation of the CRS by clients and potential clients
  • Improved utilisation of the CRS by Participating Institutions
  • Improved utilisation of the CRS by Bank of Uganda itself


The main objectives of the project are to:

  1. Improved utilisation of the Credit Reference System (CRS) by Participating Institutions (PIs) / Component 1 and
  2. Improved utilisation of the CRS by Bank of Uganda itself / Component 2

 

Services delivered:


Component 1:

  • Review current credit report format and the usage of credit reports in credit analysis
  • Determine core CRB information required for effective credit analysis
  • Provide recommendation on a “fit-for-purpose” credit report format for Uganda and on improved usage of credit reports by PI
  • Organize one day workshop for participating institutions to present findings and recommendations
  • Train trainers form participating institutions, Uganda training firms and BoU (153 participants) in the following modules (rational for CRB, credit risk, managing disputes, communicating the CRB to clients)
  • Develop e-learning modules

Component 2:

  • Develop reports to be generated from CRB data for use by different internal department: research directorate, Financial Stability, Supervision directorate
  • Identify training needs of the above mentioned departments/directorates to eb able to effectively use the information / reports generated
  • Deliver training to the above mentioned departments / directorates
  • Add value to the requirements defined by BoU through consideration of what additional CRB-related information could be usefully generated to support BoU´s
  • Consider proportionality to ensure that the level of the reporting burden on CRB´s is appropriate to the level expected benefits of receiving this data
  • Consider the current and likely future quality of CRB data in comparison to the quality of data of directly reported by PIs