Initiative for the creation of a Bureau for solvency survey
Belgrade, 20. May 2003. – The Minister of Finance and Economy, Mr.Bozidar Djelic supported today the initiative from the Union of the Bank of Serbia (UBS) on creating a credit bureau at the service of the banks, aimed to follow-up the solvency of banks’ clients.
The principal goal of this Bureau creation is the reduction of the risk of wrong bank financial placements, as well as the introduction of a more strict financial discipline in using bank services.
On the occasion of the Seventh session of the Board of directors of the Union of Banks of Serbia (UBS), Minister Djelic said that the Serbia’s choice of the credit bureau model and it’s implementation, depends on the decision to adopt either the European either the American model.
The Minister explained that the European credit bureau model is based on a positive selection of bank’s clients, which means that the bureau issues a certificate guaranteeing that the potential client was, by the past, mainly prompt in his obligations payment. On the other hand, the American Bureau model is far more restrictive and is based on the principle of “negative selection”. This means that the Bureau can issue a certificate mentioning that some clients – mainly physical persons (individuals) had problems with banks, because of failing to comply regularly with their payment obligations – reason for the banks not to grant them any more credits – explained Mr. Djelic.
The Finance minister also added that in a certain number of strongly developed market economy countries, this kind of Bureau operates within certain institutions (such as the USB), while in other countries, it works independently. According to the Tanjug News Agency, the Minister also announced the creation of a special sector within the Finance Ministry, aimed to follow-up the work of the whole country financial system – and, in accordance to the provisions of the Constitution Charter, take-over the activities of the former Federal Finance ministry.