The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE CENTRAL BANK intends to issue its draft Credit Reporting Bill for public consultation before the end of summer 2013, its governor has confirmed.

Wendy Craigg said the Central Bank hoped to have the Bill enacted before the end of the year, “but not later than the first quarter of 2014”.

Responding to Tribune Business questions, Mrs Craigg said: “A draft Credit Reporting Bill, prepared by the International Finance Corporation, is under review by the Central Bank, the Data Protection Commissioner and members of the Bahamas Credit Bureau Project’s Legal Working Group, which was established to review the draft Bill.

“This Working Group comprises representatives from the public and private sectors, including the Clearing Banks’ Association and the Bahamas Chamber of Commerce.”

The draft Bill seeks to:

• Establish the rights and obligations of the credit bureau, its users, the organisations that supply information to the bureau, and consumers;

• Provide clear guidelines on the kinds of data that can be collected.

• Indicate how long data can be retained.

• Specify how databases will be maintained, sold or otherwise disposed of if a service provider decides to leave the market, fails or otherwise suspends services.

• Facilitate the effective supervision of the credit reporting sector, and enforcement of the requirements of the credit reporting legislation;

• Provide regulators with effective instruments for fulfilling their responsibilitiess.

Mrs Craigg added: “The Central Bank is also in the process of establishing a committee to review a Request-For-Solution document, which will be used to invite credit bureau operators to submit proposals on setting up credit bureau operations in the Bahamas.

“It is anticipated that the selection of the credit bureau operator will commence no later than early 2014, following the enactment of the proposed Credit Reporting Bill.”

Speaking on the move that would bring Bahamian credit unions under the regulatory supervision of the Central Bank, Mrs Craigg said the draft Bahamas Credit Unions Bill and regulations were in the final stage of review.

“The draft Bahamas Credit Unions Bill and regulations, which will provide for the supervision and regulation of credit unions by the Central Bank, are in the final review stage by the bank and the Department of Cooperative Development, after extensive discussions with representatives appointed by the credit union sector,” she said.

“ These consultations have been very constructive and helpful as we seek to ensure the appropriateness of the legislative proposals, both from the standpoint of the characteristics of our local sector and those principles deemed to be international best practices.

“Following this exercise, the intention is to issue the documents for public consultation and, to facilitate feedback, we are planning to launch a series of town meetings in Nassau and Grand Bahama to take place by September.

“Thereafter, the Bill will be channelled though the formal approval and legislative channels, and we anticipate enactment no later than end-2013.”