Qatari banks will now have access to borrowers’ credit details and will be able to rank them in terms of creditworthiness.
The move, which the Qatar Credit Bureau (Qatar CB) hopes will reduce the number of write-offs and defaults, was reported on Saturday.
“Customers with a good credit rating will be in high demand and competition will be geared towards offering them enhanced services, better interest rates and preferential treatment,” Sheikh Bandar bin Saud Al Thani, CEO of the Qatar Credit Bureau (Qatar CB) was quoted as saying by Oxford Business Group.
“We have been operating under Qatar Central Bank for just over a year and it will take another three to five years before we will be able to identify a significant impact on write-offs and defaults,” Sheikh Bandar said.
“I am happy banks are now able to see customer credit reports as this will assist banks in making more informed decisions and serving their customers more effectively,” he said.
Qatar CB began operations in March 2011 and can also provide credit reports to phone companies, utilities and insurance firms.
Qatar’s banking sector has seen huge growth in recent years. At the end of 2011, total assets of the country’s commercial banks grew by 22.3 percent to US$190.6bn in 2011 from 2010, while customer deposits increased by more than 18.5 percent to US$100bn, Abdulla Bin Saoud Al Thani, the country’s central bank governor said in a speech in February 2012.
Credit facilities to customers rose by 28.2 percent to US$103.5bn, he added.
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