|A significant addition to Singapores risk management infrastructure is the industry-led CCB initiative. The CCB, launching in September 2002, will help financial institutions mitigate consumer credit risk through information pooling. MAS is providing the regulatory guidance and support for this important development.
The availability of timely and reliable customer credit information is vital for financial institutions in making the decision to grant or sustain credit facilities. The CCB will enhance the reliability of financial institutions internal credit rating systems and help them meet the challenge of improving the quality of their consumer credit portfolios.
MAS expects the establishment of the CCB to lead to an increased amount of credit business, more competitive pricing of credit facilities and lower credit loan defaults and delinquency rates. The launch of the CCB will mark the beginning of a new risk management process and will further bolster the integrity and transparency of Singapores financial sector.