SINGAPORE - CREDIT bureaus are the latest institutions being targeted by the Monetary Authority of Singapore (MAS) in its efforts to beef up the financial eco-system here.
The central bank said on Tuesday that it is proposing to enact a new Credit Bureau Act (CBA) to ensure greater and more formal oversight of such agencies.
Credit bureaus are in the business of collecting credit data to facilitate more comprehensive credit assessments by their members, for example, banks.
Such agencies are not subject to regulation or penalties currently.
"MAS proposes to subject them to formal oversight under a new Credit Bureau Bill, so as to safeguard sensitive borrower credit information and protect consumers' interests," the regulator said in a statement.
Under the proposed framework, credit bureaus will be licensed by MAS and be subject to ongoing regulatory requirements.
A key focus of these requirements will be for credit bureaus and their members to ensure data confidentiality, security and integrity.
In addition, to better enable consumers to access and verify the accuracy and completeness of their credit records, members of licensed credit bureaus will be required to provide to a consumer a copy of his credit report at no cost within a specified period of approving or rejecting a credit application by the consumer.
Members of licensed bureaus include banks, finance companies and credit card companies.
There are now two credit bureaus, namely Credit Bureau Singapore and DP Credit Bureau, that are recognised by MAS.
MAS is issuing a consultation paper on this. It welcomes public feedback.
Comments should reach firstname.lastname@example.org by Sept 12.