History review: State Bank seeks borrowers’ data

SBP pointed out that institutions were either not providing the requisite information or were providing incorrect data

KARACHI: The State Bank of Pakistan (SBP), reacting to incomplete and incorrect data filing, has asked banks and other financial institutions to provide complete information about borrowers in a bid to determine creditworthiness of people seeking loans. In a letter to banks and financial institutions on Friday, SBP pointed out that some institutions were either not providing the requisite information or were providing incorrect data. This information was used both by banks and financial institutions to assess the creditworthiness of prospective borrowers, as well as by the central bank in policy formulation, it said, adding “provision of incorrect data or its non-submission carries implications for decision-making.”

Published in The Express Tribune, May 28^th, 2011.