CIB means Credit Information Bureau. With a view to strengthening credit discipline and streamlining all sorts of data in a systematic way for formulation of monetary, economic and credit policy, a full-fledged CIB was established in Bangladesh Bank on 18/08/1992. Full particulars of all borrowers and guarantors (individual/firms/company) of all banks and NBFI in Bangladesh and whose outstanding balance is Tk. 50000 and above and defaulter credit card borrower of Tk 10000 and above are maintaining in the CIB department.
Credit
Information Bureau (CIB) is a credit record of an individual, which contains
the repayment history of liability. The CIB is generated from central bank of a
country. In the previous time, the CIB was generated manually but now a days it
is generated through online from the server of Central Bank. In manual process
it was a lengthy process which took about 15 to 20 days to generate, but now it
requires only few seconds. The financial institutions which engaged with
lending to others must use CIB to know the credit history of applicant.
In Bangladesh there is
loan default culture exists. At present 10% amount of loan is classified. This
type of loan is called non-performing. To avoid the worst situation of default
loan, BB has taken some measures. Online CIB is one of them.
Before sanctioning of
any loan (and other purposes also) clean report of the borrower and guarantors
is compulsory to obtain for the banking and NBFIs. So, there is no possibility
of concealment of fact by any bad elements. As a result old bad borrowers are
not getting fresh loan resulting reduction in bad loans. Defaulter borrowers
will not be eligible to participate in the parliament election, be a CIP, be a
director in a bank or NBFI, joint venture entrepreneur, member of stock
exchange etc.
The users of Online CIB
are
I. Bank
II. NBFI
III. Ministry of Industry, commerce and
finance
IV. Election commission
V. Security and exchange commission
VI. Parliament
VII. Board of investment
VIII. National Board of Revenue