Credit Bureau

Bank Negara Malaysia’s Credit Bureau is established under the repealed Central Bank of Malaysia Act 1958 and continues to operate under the Central Bank of Malaysia Act 2009 (CBA). It has been in operation since 1982. Like other credit bureaus in the world, the Credit Bureau essentially collects credit-related information on borrowers from lending institutions and furnishes the credit information collected back to the institutions in the form of a credit report via an online system known as the Central Credit Reference Information System or CCRIS.

Financial institutions extend credit facilities either for business or personal purposes. Information in the credit report is important and serves to assist financial institutions in making informed decisions on credit applications and/or assess the creditworthiness of existing borrowers during the periodic credit review. Thus, it is critical that information contained in the credit report is up-to-date and accurate.

The Credit Bureau plays an important role in credit risk management of banks and in promoting a sound credit culture among Malaysians. It is recognised as a major component of a robust financial system infrastructure. Increasingly, international investors also take into account the presence of effective and robust risk management systems in an economy when making investment decisions. This explains why more and more developing economies are also establishing credit bureaus.

A Credit Bureau supports financial institutions in making informed and responsible lending decisions in a timely manner. Information obtained from the Credit Bureau also helps financial institutions to mitigate the possibility of other issues such as fraud cases.