CIRA Granted Licence to Operate Credit Data Agency
Many in business are wondering who the owners of Credit Information Reporting Agency PTE Limited (CIRA) are.
It is confirmed, the Reserve Bank of Fiji has granted a licence to CIRA owners and local investors Winston and Janine Penjueli to conduct business in Fiji as a credit reporting agency.
CIRA had applied for a licence to operate as a credit reporting agency in July, 2017 and after a comprehensive assessment was granted a licence on March 29, 2018.
In granting the credit reporting agency licence, Governor of Reserve Bank Ariff Ali stated that credit reporting benefits both the lenders and borrowers, and in turn increases economic activity.
With the licensing of CIRA, interested credit information providers and credit report recipients will be advised of the appropriate time to submit their applications to the Reserve Bank of Fiji, for registration, as required under the Act.
CIRA is the first credit reporting agency to be licenced under the Fair Reporting of Credit Act 2016 and met all the criteria.
This new agency can complement the role of the Reserve Bank in maintaining financial stability, and assisting the ease of doing business in Fiji.
It is important that the business of credit reporting operates within a framework that realises these benefits.
The framework, therefore is through the Act and Regulations, and supervision by RBF.
It is understood there has been an absence of a credit reporting agency in Fiji for 22 months.
Fair Reporting of Credit Act 2016
The establishment of credit reporting agencies in Fiji is governed by the Fair Reporting of Credit Act 2016 (“Act”) and its accompanying Fair Reporting of Credit Regulations 2016 (“Regulations”), which empower the Reserve Bank to licence and supervise credit reporting agencies, and register credit information providers and credit report recipients, in Fiji.
So what does this mean?
Well, CIRA’s entry will again service an important need of lending institutions with credit information sharing and reducing information asymmetry between lenders and prospective borrowers, and also assist borrowers who could use their good credit histories to enhance their borrowing capacities.
What is a Credit Reporting Agency?
A credit reporting agency, also known as credit reporting bureau by definition is a business that maintains historical credit information on individuals and businesses. They receive reports from lenders and various other sources which are compiled in a credit report that includes a credit score when issued.
Credit agencies have the ability to receive a wide range of information and data that can be included in a credit report.