Credit Information System Act

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Republic Act No. 9510, otherwise known as, Credit Information System Act of 2008 or CISA Law[1] is an act establishing the credit information system in the Philippines.[2] The State distinguished the need to build a centralized and comprehensive credit information system for the dissemination and collection of fair and accurate information relevant to, or arising from, credit and credit-related activities of all entities participating in the financial system.[3]

A credit information system will straightforwardly address the need for dependable credit information concerning the credit standing and track record of borrowers. The operations and services of a credit information system can be expected to: significantly improve the overall availability of credit especially to micro, small and medium-scale enterprises; provide mechanisms to make credit more cost-effective; and reduce the excessive dependence on collateral to secure credit facilities.[4]

The State shall endeavor to have credit information provided at the least cost to all participants and shall ensure the protection of consumer rights and the existence of fair competition in the industry at all times. An efficient credit information system will also enable financial institutions to reduce their over-all credit risk, contributing to a healthier and more stable financial system.[5]

In 2008, CISA law arranged the powers and roles of the Credit Information Corporation (CIC) that primary mandate is to construct a centralized and comprehensive credit information system for the collection and dissemination of accurate and fair information relevant to, or arising from, credit and credit-related activities of all entities participating in the financial system.[6]

CIBI Information, Inc.[edit]

CIBI Information, Inc. or CIBI, formerly known as Credit Information Bureau, Inc., is the first credit bureau in the Philippines. CIBI started as a government entity under the Central Bank of the Philippines department of Loans and Credit to initiate a credit information exchange system in the country.

Founded in 1982, CIBI was established through the power of Presidential decree 1941 created under Central Bank of the Philippines, now Bangko Sentral ng Pilipinas (BSP); the Securities and Exchange Commission (SEC) and the Financial Executives Institute of the Philippines (FINEX).

In 1997, Credit Information Bureau, Inc. was incorporated and transformed into a private entity and became CIBI Information, Inc. CIBI is a provider of information and intelligence for business, credit and individuals. The company also supplies compliance reports before accrediting suppliers, industry partners and even hiring professionals.[7]

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