Friday, May 8, 2015
CO-OPS TOLD TO FIX CREDIT DATABASE
Cooperatives with lending activites are urged to fix their respective credit databases soonest to be able to submit basic credit data to the Credit Information Corporation (CIC), which announced that it is ready to accept such data by June 2015.
Jaime P. Garchitorena, CIC president, made the call during his address at the Cooperative Financial Cluster Summit held last April 17-18, 2015 at Tagaytay City, attended by some 700 cooperative leaders.
CIC is a government-owned and controlled corporation mandated to operate a centralized credit registry that will collect positive and negative data on loan borrowers.
It will also provide basic credit information to individuals and entities who have or were given access rights to the same.
Cooperatives engaged in lending activities, such as credit cooperatives, are among the institutions tasked under to submit credit data to CIC under R.A. 9510, or the Credit Information Systems Act (CISA).
Garchitorena said that the establishment and eventual availability of a comprehensive, centralized, and accurate credit information system would inspire financial inclusion.
Not only will it lessen lending risks for creditors, but it would also allow borrowers to leverage on their good credit standing to access loans they needed for business expansion, he pointed out.
He also mentioned that CIC was aware of the challenges faced by cooperatives lacking the proper technological infrastructure to comply with CISA, even as he urged anyone needing technical assistance to get in touch with CIC.
Cooperatives, through the Philippine Cooperative Center, are among the shareholders of CIC.
(From CIC press release: www.creditinfo.gov.ph/news/cic-coops-comprehensive-credit-database-supports-business-economic-growth-and-financial ).