SBP Reduces Reflection Period of Waived Off Loans By 5 Years

The State Bank of Pakistan (SBP) has decided to reduce the reflection period of its written off/waived loans and advances from 15 years to 10 years for corporate borrowers in its Electronic Credit Information Bureau (eCIB).

It is a general assumption that the negative history or write-off for a relatively long period might deprive borrowers of a fresh start and exclude them from accessing finances for longer periods (following the write-offs or waivers) regardless of their ongoing financial performance and other favorable information.

Various business bodies and chamber members have also frequently raised such concerns and opine that placing a one-time write-off/waiver in the eCIB for 15 years is a long period, particularly when a business has repaid or settled its transaction with the bank. The situation prolongs hindrances for businesses’ attempts to avail fresh financing.


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Decreasing the reflection period to 10 years will align the system with international practices, provide a conducive business environment to boost economic activities, and improve the country’s ranking in the periodic Ease of Doing Business survey conducted by the World Bank.

The eCIB is a repository of information for the credit history of borrowers of the banking system and is used mostly by banks or financial institutions to assess the creditworthiness of borrowers. Additionally, this decision follows a detailed assessment of international practices.


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Credit Information Bureau or Credit Registry (the eCIB) is one of the global supervisory tools used to assist supervisors in off-site supervision and on-site examinations.

The SBP established its Credit Registry in 1992 to complement its role of prudential supervision and its assessment of the risk-monitoring functions of its regulated FIs. Since then, the eCIB of the SBP has evolved from a manually-operated system to a modern electronic online credit reporting system that is fueled by improvements in the system and technology.

The existing eCIB system aids the expansion of credit and facilitates the movement of FIs from the traditional subjective approach of granting credit to a more efficient lending process.