First look at sample credit risks report

PUBLISHED : Friday, 29 March, 2002, 12:00am
UPDATED : Friday, 29 March, 2002, 12:00am

Banks have offered a glimpse of the type of information they want to share in the controversial 'positive credit bureau' they hope to see introduced in the SAR.

Privacy campaigners have objected to the plan, but the Hong Kong Association of Banks believes it will help combat sharply rising loan defaults caused by borrowers who fall too heavily into debt and are then unable to repay their loans.

Legislators in the Legco Panel on Financial Affairs have invited the association to a discussion on the bureau, planned for April 9.

In a letter to the panel, the association said yesterday it would welcome the opportunity to make a presentation on the bureau and enclosed a sample of a credit report that could be available to a bank assuming the bureau were implemented.

The sample report suggested a bank inquiry should enable a credit officer to see the details of a prospective customer's existing credit-card loan limit with all other banks, as well as any outstanding loan amounts - including mortgage loans and tax loans.

It should also make available a six-month record of repayments on all loans, suggested the association.

'After positive data sharing as proposed by the industry is implemented, financial institutions will exchange details of the credit facilities granted to new and existing customers in respect of credit cards, unsecured personal loans, and secured personal loans,' the association said.

'Financial institutions will share details of credit exposure and repayment history, including credit/loan limit granted, type of facility (term or revolving), outstanding loan balance, original number of payments, last statement balance, last payment amount, last payment date, and value of collaterals,' it suggested.