Up to 19 commercial banks in Bahrain may cooperate in the creation of a credit reference bureau, designed to enable sharing information in the personal finance sector, reported Gulf News. The issue was discussed earlier this week by the Bankers Society of Bahrain
Sources quoted by the newspaper said that the main purpose of the bureau will be to share information on loans to individuals, and hopefully weed out those clients more likely to turn into bad debts.
The tendency of Bahraini citizens to take personal bank loans immediately after they get married, and the competition among the country’s various banks to reach those customers has made such a reliable credit-information bureau essential, industry sources say.
Currently, certain banks extend loans of up to up to 40,000 dinars without properly evaluating the applicant's capacity to repay.
In recent years, the incidence of individuals departing from the GCC region, while leaving behind debts and financial commitments has become more frequent. — (Albawaba-MEBG)
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