On 1 January 2008, the Credit Register of the Bank of Latvia was launched.
The Credit Register has been developed pursuant to the provisions of the Laws "On Credit Institutions", "On Credit Unions", "On Insurance Companies and Supervision Thereof", "On Civil Liability Insurance for Land Vehicle Owners" and the Bank of Latvia "Regulation for the Credit Register", "Technical Regulation for the Credit Register" and "The Amount of and the Payment Procedure for the Fees to Be Paid for the Use of the Credit Register by Its Participants". The Credit Register has been developed in view of the "Report on the Developments of Consumer Price Inflation and Proposals for Its Reduction" submitted by the Ministry of Finance and supported by the Republic of Latvia Cabinet of Ministers' meeting on 6 March 2007.
The Credit Register is an information system of the Bank of Latvia ensuring the collection, centralised accumulation and storage of data on borrowers and borrower guarantors, their obligations and performance thereof, aimed at providing information to the Credit Register participants, the Financial and Capital Market Commission, the Bank of Latvia and borrowers themselves (natural and legal persons) in compliance with the procedure stipulated by laws and regulations.
The Credit Register participants are banks and bank subsidiaries registered in the Republic of Latvia and providing financial services associated with credit risks, branches of foreign banks, insurance corporations and credit unions registered in the Republic of Latvia, as well as the association "Latvian Office of Vehicle Insurance". On 1 January 2008, there were 98 participants in the Credit Register.
The goal of the Credit Register is to enable the participants to assess borrowers' credit worthiness more accurately, manage credit risks more efficiently, provide additional opportunities for performing supervisory functions and secure the Bank of Latvia and Financial and Capital Market Commission's needs for the macroeconomic analysis.
The Credit Register comprises the following information:
- Data on the borrower and borrower's guarantor.
- Data on obligations.
- Data on the outstanding obligations at the end of the calendar quarter.
- Debtor information.
- Information on the modified and cancelled data.
- Information on data requests.
In the Credit Register, data on all types of loans (mortgage loans, consumer credit, payment card credit, financial leasing, commercial credit, operational leasing and factoring, etc.), guarantees provided and other obligations are collected.
On 1 January 2008, debtor information, previously registered in the Bank of Latvia Register of Debtors, was automatically registered with the Credit Register. On 1 January 2008, the Credit Register contained debtor information on 68 758 borrowers and 97 564 obligations. In the Credit Register, participants will proceed registering debtor information according to the same criteria as previously in the Bank of Latvia Register of Debtors (the borrower or borrower's guarantor has delayed the payments stipulated in the agreement for more than 60 days, and the amount of the entire arrears is at least 100 lats.
As of 1 January 2008, participants submit data on any new loan (obligations), borrowers and borrower guarantors. By 30 June 2008, participants shall submit data on the entire outstanding loan portfolio (as at 1 January 2008).
As of 1 July 2008, participants shall submit data on outstanding obligations at the end of each calendar quarter.
The Payment Systems Department of the Bank of Latvia maintains the Credit Register and discloses its data.