IFC to Help Jordan Introduce Credit Bureau Legislation, Support Smaller Businesses

Dec 2008
Amman, Jordan, December, 03 2008 - IFC, a member of the World Bank Group has signed an agreement with Jordan to support the Middle Eastern country’s efforts to establish a legal framework for credit bureaus, institutions that will help individuals and smaller businesses access finance, boosting the overall economy.

IFC will work with Jordan’s Ministry of Industry and Trade to help the country draft and adopt new legislation that will regulate the sharing of credit information. IFC will also help raise awareness among the private and public sectors about the economic benefits of credit reporting.

IFC Financial Markets Program Manager for the Middle East and North Africa, Thomas Jacobs, said: “The existence of accurate information helps banks and other lenders assess the creditworthiness of individuals and small businesses and their ability to pay back a loan. This minimizes the risk of nonperforming loans and prevents customers from being overly in debt.”

Credit bureaus are vital to helping increase access to finance for individuals and businesses and play an important role in emerging economies. They give banks and other financial institutions confidence to expand their lending and to make faster loan decisions by providing transparent and detailed customer credit information.

To help raise awareness of the benefits of credit bureaus, IFC, with Jordan’s government, today spoke with senior managers of commercial banks and government officials who will be instrumental in developing a private sector credit bureau industry.

Participants discussed the role of credit reporting in modern risk management and in increasing access to finance. They analyzed the components of an enabling regulatory environment and the challenges of establishing private credit bureaus.  

The long-term goals of Jordan’s credit bureau program are to increase the efficiency of financial institutions, to support the growth of smaller businesses, and to mitigate lending risks.

IFC’s work in Jordan is focused on supporting improvements to the country’s overall business environment, which includes helping the government improve leasing regulations, corporate governance for banks, and SME management training.

Source : IFC

Research Analysis Tools

The fund indexes, institution benchmarks and other market information displayed here are all Symbiotics designed analysis tools, created in-house by our analysts and experts. Symbiotics has one of the oldest track records in microfinance investment analysis dating back to the late 1990s; its indexes and benchmarks have been regularly used as markers by investors, asset managers, financial institutions and practitioners. These, as well as several other research products, are available through the Research Account. Click on the link below to find out more.

Learn More