New rules in the Bureau of credit histories

In the market of Bureau of credit stories (BKI) will be qualified CRB, which will be virtually online to provide the lenders information to calculate the indicator of debt burden of the borrower. All offices will assign individual ratings for citizens to understand their creditworthiness. The method of calculating the debt load and General requirements to the method of ranking will determine the Bank of Russia. This law was approved today by the Council of the Federation.

The law specifies the list of transactions for which information must be sent to the CRA, and expand the sources of formation of credit histories. In the KJV, in particular, will be expanded to include information not only from banks and MFIs, but also from the lessors, guarantors, Trustees in bankruptcy, mortgage agents.

The new approach will reduce inaccuracies in the evaluation of payment discipline of the borrower, and the lenders will be able to more quickly and objectively to make decisions on granting loans and borrowings.

Will also change the order of storage of credit history. Now the expiry date, and it will be 7 years, to be applied to the records of specific credit transactions, not to the entire credit history in General. This requirement will reduce costs for the KJV, and creditors will give the opportunity to build on the most significant from the point of view of assessing the borrower’s credit history.

The law extends the Supervisory powers of the Bank of Russia against credit Bureau. The regulator is given the right to exclude CRB from the state registry without the decision of arbitration courts in identifying significant violations of the law, as well as set requirements for the quality management and internal control in BCI, information security, continuity plan and restoration activities. The Bank of Russia will be able to specify the requirements for the financial viability of owners and managers of MDU, as well as to oblige BCI to report.

The law will come into force on 1 January 2021, a number of provisions will take effect from a delay to BCI and market participants have had sufficient time to adapt their automated systems to the new requirements.

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