The BCEAO will set up credit bureaus in Senegal
The Central Bank of West African States (BCEAO) is to set up credit bureaus in Senegal, with a view to expanding access to credit in the region."The BCEAO is currently working on the establishment of credit bureaus and bank guarantees registers," said Governor Tiemoko Meyliet Koné in an interview with the magazine Intelligence.
"Risk assessments on customers - which influence the establishment of lending rates - must be improved to allow banks to better understand the profile of borrowers," he added.
Credit bureaus collect information on borrowers and make this data available to lenders in order to help them make a decision.
They can address the deficit of information between lenders and borrowers so that lenders can make a proper risk assessment.
Banks are often reluctant to lend because of this deficit and thus require many guarantees that most individuals and businesses are not able to provide.
The BCEAO believes that these offices should therefore promote the development of access to credit in the country by reducing the information gap.