Developing a Credit Reporting Framework in Kenya
In 2000, the level of nonperforming loans in Kenya topped Kshs 112 billion (US$1.4 billion). This posed a threat to the stability of the financial sector, and there was a consensus that a credit information sharing mechanism would help resolve the...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2009/05/10618019/developing-credit-reporting-framework-kenya http://hdl.handle.net/10986/10550 |
| Summary: | In 2000, the level of nonperforming
loans in Kenya topped Kshs 112 billion (US$1.4 billion).
This posed a threat to the stability of the financial
sector, and there was a consensus that a credit information
sharing mechanism would help resolve the tendency of some
debtors to take advantage of information asymmetry and
resort to multiple borrowing, thus becoming serial
defaulters. After several failed initiatives by various
local stakeholders to set up credit bureaus, International
Finance Corporation (IFC) was invited to provide assistance
to the government authorities in setting up a legal and
regulatory framework as well as to support private sector operators. |
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