Central Register of Credits

On 1 May 2002 the Czech National Bank is launching test operation of the Central Register of Credits. During this test period banks will have the chance to get fully acquainted with the register's functions and to train up the staff who will be using the register's services in their work.

The project to set up a Central Register of Credits (CRC) of business entities was started in 2000 at the joint initiative of the CNB and the Czech Banking Association. Despite its logistical complexity, the project has taken just two years to implement. The CRC will allow rapid exchange of information on each debtor's loan involvement and debt repayment quality between commercial banks operating on the Czech market. The CRC will help improve and streamline credit risk management in the Czech banking sector.

A necessary legislative condition for putting the CRC into operation was the passage of an amendment to Act No. 21/1992 Coll. on Banks with effect from 1 May 2002. The amended Act allows banks to exchange information on debtors via the CRC application at the Czech National Bank.

The system can go live only after all the participating banks have brought their own information systems into compliance with the requirements for information quality, i.e. methodological uniformity and completeness. Information obtained during the test run cannot be used for decision-making in banks, since it will not provide a complete overview of the loan involvement of clients across the banking sector.

Ceská konsolidacni agentura will also be involved in the project following the revision of the relevant legislation.

Alice Frisaufova, CNB spokesperson