Afghanistan Banks Association

د افغانستان د بانکونو ټولنه
Afghanistan Banks Association
Voice of The Banks

Afghanistan Banks Association

Online Public Credit Registry Launch Ceremony

date: December 16, 2013

Recently Da Afghanistan Bank (DAB) has taken crucial steps toward strengthening the banking sector of Afghanistan. The establishment of online public credit registry (PCR) system is one of them. In the opening ceremony at DAB on December 16, 2013, first phase of online PCR system, with the support from World Bank and Harakat, was formally launched to reduce risk, promote healthy competition and ensure greater transparency. In his opening speech, Mr. Khan Afzal Hadawal, DAB First Deputy Governor mentioned that public credit registry is a safe system for financial institutions, commercial banks, telecom companies, and other financial service providers to get on-time and accurate information about their credits. He added that this system will shorten credit procedures and financial institutions may not depend on the manual information from other financial institutions which is a time taking process. He further added that the implementation of this system will improve access to finance, reduce cost by automation of process and promote risk management practices in the country. PCR information will be available online through a specific web address to financial institutions, insurance companies, DAB, telecom companies, judicial institutions, and other PCR operators. The implementation of PCR system will improve Afghanistan's ranking in World Bank DBI report.

Mr. Khalil Sediq, Afghanistan Banks Association (ABA) Chairman highlighted that the PCR system will effectively help banks by having an accurate and on-time access to the reputational collateral of their borrowers. Previously, most of the banks needed to know borrowing companies in person. Some banks relied on third party intelligence to identify the borrowers but, after the launch of this system, banks will select their borrowers by their credit history and reputational collateral. Mr. Nisar Ahmad Yousafzai, Director General Public Credit Registry said that no system was available in the country to record and analyze information on credit. The new system is introduced to further strengthen banking system by having access to PCR online. He added that its a crucial step toward financial sector growth and development. He also added that all commercial banks should apply the system and in case of any violation of DAB laws, banks and financial institutions will be fined.