Business
Central Bank opens Public Consultations for the Credit Registry Bill
Apia, Samoa – 13 September 2023: The Central Bank of Samoa has announced the start of public consultations for the establishment of a Credit Registry Bill, an essential legislative proposal aimed at enhancing the transparency and efficiency of credit reporting in Samoa.
The overall policy goal of establishing a Credit Registry is to (i) reduce lender risk; (ii) improve access to finance; and (iii) promote financial sector stability.
Currently, financial institutions and other lenders in Samoa often have poor or limited credit information about new borrowers, which intensifies lending risk. This increased risks lead to greater costs for lenders, and is passed on to borrowers through high interest rates and reduced willingness to lend. Increased risk and potential over-indebtedness also pose a risk for financial sector stability.
The role of the Credit Registry is to collect and distribute credit information, allowing lenders to more accurately evaluate risks and avoid bad loans, whilst also improving the credit market for potential borrowers and supporting financial sector stability.
The Central Bank press releases says public input is integral to the success of this proposed legislation and encourages all stakeholders and members of the general public to review the Credit Registry Bill and share their comments, suggestions, and concerns. The due date for comments is 22nd September 2023.
