The Bulgarian National Bank (BNB) has announced upcoming changes to the regulation regarding the submission of information to the Central Credit Register (CCR). This is clear from an official statement by the central bank, published on its website. The decision was made in connection with publications in electronic media that highlight cases of fraud. These cases are most often related to attempts to take out multiple loans from different banks or financial institutions within the same day, reports BTA.
Currently, according to Art. 10, para. 2 of Ordinance No. 22 of the BNB for the Central Credit Register (CCR), the reporting units - banks, financial institutions and others - have a normative possibility to submit data to the register within 0 to 5 working days from the date of concluding a new loan agreement or upon amendment of an already concluded agreement, including renegotiated loans.
At the heart of the system, in the CCR, a technical possibility has been introduced for multiple submissions of data packages within a single working day. This happens in accordance with the internal rules and procedures, the introduced information systems in the reporting units, which service the lending process. Factors such as the dynamics in the credit portfolios, the number and size of their territorial structures also play a role.
It is interesting to note that a variety of reporting units, different in nature and scope of activity, submit information to the CCR. This includes banks, financial institutions, payment institutions, electronic money companies and providers of collective financing services. The data shows that the largest credit portfolios exceed 480,000 for financial institutions, and for banks exceed 1 million loans.
Every month, the impressive over 7.3 million loans, submitted by more than 260 reporting units, are reported to the CCR. The BNB plans to reduce the deadlines for submitting data to the register under Art. 10, para. 2 of Ordinance No. 22 for the CCR. This will happen after a public discussion with the interested parties, the bank clarifies.
The BNB emphasizes that in order to improve the quality of information, the CCR provides the reporting units with the opportunity to receive information on the number of checks performed in the register, as well as on the number of reporting units that have performed these checks in a given period. This information concerns the credit indebtedness of a natural or legal person who is or wishes to become a party to a legal relationship with them in connection with obtaining a loan. Visualizing multiple checks for a given person, preceding the granting of a loan, in the information system of the CCR can serve as an indicator that the person has applied for a loan in several institutions at the same time.
In the context of these measures, the BNB has prepared an Ordinance for amendment and supplementation of Ordinance No. 22 for the CCR. It provides for the regulation of the submission of information to the CCR for court decisions or administrative acts that have entered into force in cases where there are data disputed in court for a client contained in the register. If there is a basis, the reporting units will be obliged to make corrections in the CCR in accordance with the court decisions or administrative acts that have entered into force. It is believed that these additions will lead to greater transparency and detail in the information received from the register. This, in turn, will help to carry out a more precise assessment of the creditworthiness of individuals, as well as to avoid practices of irresponsible lending and over-indebtedness.
Finally, the BNB reminds that according to Art. 17, para. 2 and para. 3 of Ordinance No. 22 for the CCR, the reporting units are responsible for the accuracy, completeness and timely submission of the information in accordance with the order and scope provided for in the Ordinance, as well as for compliance with the requirements for the protection of personal data. The information submitted by the reporting units in the register must correspond to the data maintained in their information systems.