Second credit bureau receives licence in Tanzania
The Bank of Tanzania (BoT) has licensed this week a new credit bureau – called Dun & Bradstreet Credit Bureau Tanzania Limited - in a bid to reduce the rate of loan defaults in the country.The Bank of Tanzania (BoT) has licensed this week a new credit bureau – called Dun & Bradstreet Credit Bureau Tanzania Limited - in a bid to reduce the rate of loan defaults in the country.
It is the second credit bureau to become operational in Tanzania. Dun & Bradstreet Credit
Chief Executive Officer Miguel Llenas said that the
is well prepared to play a role in protecting and strengthening Tanzania's economy through its financial services, Tanzania Daily News
BoT's Deputy Governor Juma Reli has announced the launch of a Credit Reference Databank to be administered by the BoT and Dun & Bradstreet Credit Bureau Tanzania Limited.
He said in a press release that a lack of
credit reference system in Tanzania has been one of the major factors limiting access to credit, as “small firms and individuals borrow at high rates because of the high risks involved as lenders do not have information on their credit behaviours."
He added that there is an information asymmetry between the lender and the borrower about the past repayment behaviour and the current level of debt, causing banks to make decisions on their lending operations with little or no information.