Public Credit Registries as a Tool for Bank Regulation and Supervision

This paper is about the importance of the information in Public Credit Registries (PCRs) for supporting and improving banking sector regulation and supervision, particularly in the light of the new approach embodied in Basel III. Against the backdrop of the financial crisis and the existence of information data gaps, the importance of complete, accurate and timely credit information in the financial system is evident. Both in normal times and during crises, authorities need a device that allows them to look at the universe of credits in a detailed and readily way. And more importantly, they need to develop tools that exploit as much as possible the information therein contained. PCR databases contain individual credit information on borrowers and their credits which makes it possible to implement advanced techniques that measure banks' credit risk exposure. It allows optimizing the prudential regulation ensuring that provisioning and capital requirements are properly calibrated to cover expected and unexpected losses respectively. It also permits validating banks' internal rating systems, performing stress tests and informing macroprudential surveillance. In this respect, it is envisioned that the existence of a PCR will be a key factor to enhance the supervision and regulation of the financial system. Furthermore, the extent, accuracy and availability of the information collected by the authorities will determine the usefulness of the PCR as part of their toolkit to monitor the potential vulnerabilities not only on a microprudential level, but also on a macroprudential one.

Bibliographic Details

Main Authors:	Girault, Matias Gutierrez, Hwang, Jane
Language:	English
Published:	2010-12-01
Subjects:	ACCESS TO CREDIT, ACCESS TO FINANCE, ACCOUNTING, ADVERSE SELECTION, AMORTIZATIONS, AMOUNT OF CREDITS, ARBITRAGE, ASSET BACKED SECURITIES, ASSET QUALITY, ASYMMETRIC INFORMATION, AVAILABILITY OF CREDIT, BACKED SECURITIES, BACKED SECURITY, BALANCE SHEET, BANK BORROWERS, BANK CAPITAL, BANK CREDIT, BANK CREDIT CARDS, BANK CREDITORS, BANK EXPOSURE, BANK FAILURES, BANK FOR INTERNATIONAL SETTLEMENTS, BANK LOAN, BANK LOANS, BANK MONITORING, BANK OF ENGLAND, BANK OF SPAIN, BANK PORTFOLIO, BANK PORTFOLIOS, BANK REGULATION, BANK RUNS, BANK SOLVENCY, BANK SUPERVISION, BANKING CRISIS, BANKING INDUSTRY, BANKING SECTOR, BANKING SUPERVISION, BANKING SYSTEM, BANKING SYSTEMS, BANKS, BORROWER, BORROWING, BUDGETING, BUSINESS ACTIVITY, BUSINESS CYCLE, CAPITAL ADEQUACY, CAPITAL REQUIREMENT, CAPITAL REQUIREMENTS, CAPITAL STANDARDS, CASH FLOW, CENTRAL BANK, CENTRAL BANKING, CENTRAL BANKS, COLLATERAL, COLLATERAL REGISTRIES, COLLATERALS, COMMERCIAL PAPERS, CONNECTED LENDING, CONSUMER PROTECTION, CREDIT BUREAU, CREDIT BUREAUS, CREDIT COOPERATIVES, CREDIT CULTURE, CREDIT DECISIONS, CREDIT DERIVATIVES, CREDIT GROWTH, CREDIT INFORMATION, CREDIT LINES, CREDIT LOSS, CREDIT MARKET, CREDIT MARKETS, CREDIT POLICIES, CREDIT PORTFOLIO, CREDIT PROVIDERS, CREDIT QUALITY, CREDIT RATING, CREDIT RATING AGENCIES, CREDIT REGISTRIES, CREDIT REGISTRY, CREDIT REPORTING, CREDIT REPORTING SYSTEMS, CREDIT REPORTS, CREDIT RISK, CREDIT RISK EXPOSURE, CREDIT RISK MANAGEMENT, CREDIT SCORING, CREDIT SCORING MODELS, CREDIT SUPERVISION, CREDIT SYSTEM, CREDITOR, CREDITORS, CREDITS, CREDITWORTHINESS, CURRENCY, CURRENCY RISK, DEBT, DEBT OBLIGATION, DEBT OBLIGATIONS, DEFAULT RATE, DEFAULT RISK, DELINQUENCY RATE, DELINQUENCY RATES, DEPOSITORS, DEPOSITS, DERIVATIVE, DEVELOPMENT BANK, EARNINGS, ECONOMIC GROWTH, ECONOMIC POLICY, ECONOMIC RISK, ECONOMICS, EMERGING MARKETS, EXTERNALITIES, FAMILIES, FEDERAL RESERVE, FEDERAL RESERVE SYSTEM, FINANCIAL COLLATERAL, FINANCIAL CRISES, FINANCIAL CRISIS, FINANCIAL DISTRESS, FINANCIAL INNOVATION, FINANCIAL INNOVATIONS, FINANCIAL INSTITUTION, FINANCIAL INSTITUTIONS, FINANCIAL INTERMEDIARIES, FINANCIAL MARKETS, FINANCIAL PERFORMANCE, FINANCIAL PRODUCTS, FINANCIAL RATIO, FINANCIAL REGULATION, FINANCIAL SERVICES, FINANCIAL STABILITY, FINANCIAL STRESS, FINANCIAL SYSTEM, FINANCIAL SYSTEMS, FORMS OF CREDIT, GUARANTOR, GUARANTORS, HOUSEHOLDS, HOUSING, ID, INDEBTEDNESS, INFORMATION ON BORROWERS, INFORMATION REQUIREMENTS, INFORMATION SHARING, INTEREST RATE, INTEREST RATES, INTERNATIONAL BANK, INTERNATIONAL BANKING, INTERNATIONAL CAPITAL, INTERNATIONAL FINANCIAL INSTITUTIONS, LENDERS, LENDING POLICIES, LINES OF CREDIT, LIQUIDITY, LOAN, LOAN DATA, LOAN DEFAULT, LOAN LOSS PROVISIONS, LOAN PORTFOLIO, LOAN PORTFOLIO QUALITY, LOAN PORTFOLIOS, LOAN REPAYMENT, MACROECONOMIC STABILITY, MACROECONOMIC VARIABLES, MARKET RISK, MATURITIES, MATURITY, MICROCREDIT, MICROFINANCE, MICROFINANCE INSTITUTIONS, MINIMUM CAPITAL REQUIREMENTS, MORAL HAZARD, MORTGAGE, OPERATIONAL RISK, OUTPUT LOSSES, OUTSTANDING DEBT, PAYMENT SYSTEMS, PORTFOLIO MANAGEMENT, PRESENT VALUE, PRIVATE CREDIT, PROBABILITY OF DEFAULT, PROBLEM BANKS, PROBLEM LOANS, PRUDENTIAL REGULATION, PUBLIC CREDIT, PUBLIC POLICY, RATING AGENCIES, RATING SYSTEMS, REAL ESTATE, REAL SECTOR, REGULATORY FRAMEWORK, REGULATORY FRAMEWORKS, REGULATORY OVERSIGHT, REGULATORY POLICY, REGULATORY REPORTS, RELATIONSHIP BANKING, REPAYMENT, REPAYMENT CAPACITY, RESERVES, RESIDENTIAL MORTGAGES, RETURNS, RISK MANAGEMENT POLICIES, RISK MANAGEMENT TOOLS, RISK MEASUREMENT, RISK MITIGATION, RISK OF BANK FAILURE, RISK PROFILE, RISK TAKING, RISK WEIGHTED ASSETS, SAVINGS, SECURITIZATION, SOLVENCY, STOCKS, SUBSIDIARY, SUPERVISORY AUTHORITIES, SUPERVISORY FRAMEWORK, TERM CREDITS, TRADING, TRANCHES, TRANSPARENCY, UNDERWRITERS, UNEMPLOYMENT, VALUATIONS,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20101201132222 https://hdl.handle.net/10986/3972
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