PRESS RELEASE
3 July 2007
CGC and D&B to establish SME Credit Bureau
KUALA LUMPUR, July 3 ñ The Credit Guarantee Corporation Malaysia Berhad (CGC) and Dun & Bradstreet (D&B) Malaysia Sdn Bhd announced today they have entered into a strategic alliance to establish a SME Credit Bureau.
The SME Credit Bureau is a central databank of credit information on Small and Medium Enterprises (SMEs) and will act as a key source of information on registration details, credit track records, debt level and obligations, financial statements and trade partners of SMEs.
ìMore importantly, the Bureau would enrich the databank with credit scoring or ratings of SMEs, the availability of which would facilitate better risk management and credit decision-making for users,î said CGCís Managing Director, Datuk Wan Azhar Wan Ahmad.
He added that the credit ratings can be used to guide the pricing of loans and determination of credit limits. SMEs with strong credit ratings would be able to reap the benefits of lower funding costs and greater access to financing while the weak ones are expected to leverage on the informational value of their credit ratings to improve their credit standing.
ìIn addition, the financial institutions will have access to a more comprehensive and reliable credit information on SMEs while SMEs will enjoy the benefit of assessing their own bankability,î he said.
Banks and other financial institutions will be able to avail themselves to a comprehensive range of information on the SMEs in the country from the central database of the Bureau. Convenient, timely and efficient access to SME information and credit ratings is expected to assist the lending institutions to make more objective and speedier evaluation of loan applications from SMEs.
Both CGC and D&B are confident that the establishment of the Bureau will further promote the development of a sound credit culture among financial institutions and SMEs.
ìBy setting up this bureau, it is our hope that the overall transparency in SME financing will be enhanced and the workings of the credit industry strengthened in a more holistic manner thus contributing to a more stable and efficient financial system in the country,î he added.
The Bureau would also encourage non-financial entities, including the SMEs themselves to share information through the Bureau. In this regard, the members of the business community could use the Bureau to decide with confidence when evaluating existing and prospective trade credit or other business deals.
To increase membership, both CGC and D&B will work closely with financial institutions and SME-related trade associations to ensure that SMEs are convinced of the bureauís role in helping them to improve their access to finance. In addition, SMEs will also be made aware of the benefits of joining the Bureau and encouraged to be transparent in reporting their financials.
The Bureau is poised to be an integral component of the developing credit information infrastructure in Malaysia. Its establishment is expected to contribute significantly towards assisting or enabling SMEs to gain access to the financial markets.
CGC, a subsidiary of Bank Negara Malaysia, is in the business of providing credit enhancement services to SMEs in Malaysia, a niche area in which the corporation has served for 35 years. D & B Malaysia Sdn Bhd, a subsidiary of New York-based Dun & Bradstreet Corporation, is a global operator and provider of credit bureau and risk management solutions besides others like market intelligence and receivables management.
The signing of strategic alliance therefore, represents a meeting of the common objective of both parties to bridge the gaps in the availability and access to SME credit information in the country.
For further information, please contact:
Siti Badarny Hassan
Manager, Corporate Communications
Tel: 7806-2300 ext 231
03-Jul-2007 17:37:00 PM