Al Wazir: the Monetary Authority will launch the 3rd updated version of the Credit Registry System by the end of this year
Ramallah- 17/12/2014: The governor of the Palestinian Monetary Authority (PMA), Dr. Jihad Al Wazir, opened a panel discussion about developing the Credit Registry System, in participation with the chairman of the board of directors of the Association of Banks, Joseph Nasnas, and Mr. Anwar al Jayousi, member in the board of directors of the Palestinian Network for Small and Microfinance (Sharakeh). In attendance were also representatives of banks and specialized microfinance institutions.
In his opening speech, Al Wazir welcomed the attendees and presented the continuous development phases of the Credit Scoring System, carried out by the PMA, becoming one of the best systems in the world. He added that by the end of this month, the 3rd updated edition of the Credit Registry System will be launched. This system was internally developed by qualified people in the PMA and is characterized by including additional data that enhance the credit analyzing process and reducing risks of the credit decision. In this edition, data such as (courts’ decisions regarding banking cases, data of retail merchants and rental agreement enterprises, and data on real estate developers and services companies) will be revealed.
Al Wazir announced several projects that are undergoing in the PMA, most important of which is the launch of the National Switch (card 194) beginning of next year, which will connect all automated banking machines and selling points to a unified data base. This process will benefit citizens by providing the necessary liquidity everywhere and at any time. Another project was achieved which is the GIS data base which will provide all data and locations of the geographical distribution of most of the financial institutions in Palestine as a first step.
Al Wazir added that the PMA will launch in the next phase the system of unified inquiry for citizens during a trial period. This system will benefit the beneficiaries of checks to verify the rating degree of the drawer on the system of returned checks. The aim is to eliminate the phenomenon of returned checks because of insufficient funds which negatively impacts the economic development.
He affirmed that such procedures aim to preserve the safety and security of the banking system hence conserving the funds of depositors and facilitating the access operations to the credit and using it to expand the responsible and prudent loaning operations for individuals, installations and companies.
Mr. Nasnas focused in his speech on the importance of having a Credit Scoring System for borrowers being one of the vital elements of the financial inclusiveness in Palestine, the basis of developing credit portfolios, enhancing the opportunities to get banking facilitations and providing a solid ground to take the credit decision. This will be positively reflected on the banking system by reducing credit risks and facilitating the decision taking of the credit in a time record. Moreover, he stated that this workshop comes within the context of continuous coordination, cooperation and consultancy between the PMA and the banking sector in Palestine.
In his speech, Al Jayousi thanked the PMA for their continuous efforts in achieving financial security and stability and for its contributions to the specialized microfinance institutions, which became under its supervision since 2011, represented in support, cooperation, and continuous training and development. He mentioned that connecting the specialized microfinance institutions to the system contributed in their integration in the economic development and reducing poverty and unemployment in the society. He added that these institutions provide financial services to a wide range of customers versus uncomplicated credit conditions.
Afterwards, the international expert Paul Randall, the representative of Credit Info Group that developed the Credit Scoring System, presented the development and updating phases of this system by the PMA in order to achieve an effective Credit Registry System that meets the needs of the Palestinian market according to the best international standards.
Ali Faroun, director of consumers’ relations and market conduct, gave a detailed explanation about the updates applied on the Credit Scoring System and their importance in adapting the system to the Palestinian banking environment’s requirements. A discussion followed regarding these developments and to answer all inquiries of banks’ employees and microfinance institutions present in the workshop.
It is to mention that the PMA officially launched the Credit Registry System in 2008. Back then, the International Monetary Fund praised the system while “considering it an essential achievement of the Monetary Authority, and one of the outcomes of the strategic plan prepared by the Authority to become a modern and contemporary central bank”.