As part of its strategy to reduce loan defaults and write-offs – and the number of citizens in debt – Qatar has made good on a promise to grant its banks access to borrowers’ credit.
The move, which the Oxford Business Group reported yesterday, allows banks to rank individuals and companies on their credit worthinesss.
According to one report, that system, as well as Qatar Central Bank’s tightening of lending norms, were responsible for the drastic reduction in personal loans issued last year, following an outcry over the rising debt of Qataris.
But Sheikh Bandar bin Saud Al Thani, CEO of the Qatar Credit Bureau (Qatar CB), said just how big of a difference the information-sharing system will make has yet to be seen.
“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,” he told the Oxford Business Group.
Debt culture
Some 75 percent of nationals are in debt, according to the 2011 National Development Strategy.
Most owe an average of QR250,000. Qatar hopes to halve the number of indebted nationals by 2016, the report states.
As part of its mission, Qatar CB also works to spread awareness and knowledge amid Qatar’s deepening credit culture.
Last week, it tweeted:
Dear valued customer, you may obtain a free copy of your credit report by visiting the customer service in Qatar Credit Bureau office.
— Qatar Credit Bureau(@QatarCB) December 31, 2012
The bureau is located in Al Muntazah here.
Thoughts?
Credit: Photo by 401(k) 2013
