Republic of the Philippines
THE CREDIT Information Corp. (CIC) wants to launch a second on-boarding phase in August for financial firms that have not yet submitted their loan data to the database, the state-run firm’s chief said.
Financial institutions that have not yet given their credit data to the CIC by May 8 will now be given a chance to submit their loan data to the country’s credit information system by August. Consequently, these firms will also be able to gain access to the pilot phase of the database.
“We plan on a second on-boarding sometime in August... What we’re doing is we’re trying to regulate the on-boarding and usage of the data. So now that we’re tightly focused on the quality, for sure those in the pilot [phase] by April 28 will be able to use the data,” CIC President and Chief Executive Officer Jaime P. Garchitorena told BusinessWorld in a recent interview.
According to the government-controlled firm, only 100 financial entities will be able to join the nine-month pilot phase of the database which starts on May 8 after 73 corporates failed to provide their credit data as of the CIC’s March 31 deadline.
The CIC had anticipated that around 170-200 companies will be able to join the pilot phase after it projected that 117 financial institutions will be able to submit their loan data on top of the current 56 firms that are currently in production.
Republic Act No. 9510 or the Credit Information System Act mandates the establishment of a comprehensive and centralized credit information system, with CIC tasked to consolidate the data.
The law also states that submitting entities, which are the lenders, are required to submit and provide all credit data of their borrowers in their database to the CIC.
The CIC had said that they will give the remaining 73 firms a chance to submit their credit data and finish documentary requirements before May 8 for them to be able to join the pilot phase, with the CIC projecting around 50-70 institutions complying by next month.
However, those firms that won’t be able to comply by next month will have to submit their loan data by the second on-boarding in August, Mr. Garchitorena said.
“In general, the principle is if you’re not yet on board by [April] 28, pang August ka na siguro (you’ll have to be on board by August) unless we change our minds,” Mr. Garchitorena said.
CIC had said that financial entities were not able to submit their credit data on time amid difficulties in providing their documentary requirements.
The country’s centralized credit information system is expected to go live by January 2018 following a nine-month testing phase which starts by May.
-Janine Marie D. Soliman