The draft law for the Credit Bureau is nearing completion

2024-12-16 08:14:00, Ekonomi CNA

The Albanian Association of Banks is finalizing the drafting of a draft law for the establishment and operation of the Credit Bureau, which will be proposed to the Albanian government for legal approval next year.

In concept, the draft law will provide for the Credit Bureau to be set up by a private entity with experience in such activity abroad.

The Credit Bureau will contain information on the obligations that subjects have towards financial institutions, towards fiscal and state authorities in general, as well as towards utility service operators.

Since 2008, Albania has a credit registry administered by the Bank of Albania. However, the information contained in this register is limited to loans received by individuals and businesses from licensed financial institutions.

The Credit Bureau will contain more complete information regarding the obligations and debtor profile of individuals and businesses. Having information on liabilities will also enable a credit scoring of each entity, significantly simplifying the evaluation of loan applications.

Credit Bureau information will be available to interested parties for a fee, subject to prior approval by the entity itself.

The draft law provides that the Credit Bureau will be supervised by a Commissioner for the Protection of Personal Data, in order to guarantee the use of personal data according to legal requirements.

An issue still under discussion is whether the Bank of Albania should have a role in the evaluation process of the operator that will administer the Credit Bureau.

The Central Bank has expressed itself against a variant for this operator to be licensed and supervised by it. However, the Association of Banks is in favor of a solution where the Bank of Albania is part of the legal process, to increase its credibility and the guarantees about the entities that will be authorized to set up the Credit Bureau.

The establishment of a Credit Bureau was an early idea of ??the Association of Banks, but for years its implementation had no concrete steps. Discussions about the way and forms to set up a Credit Bureau started already with the plan of measures for problem loans, in 2015.

This year, the Association of Banks undertook the drafting of a draft law, financing the necessary consultancy for this purpose. Once the draft is finalized, it will be sent to the Ministry of Economy, Culture and Innovation, which through the government will propose it to the Assembly of Albania for approval./ Monitor Magazine