ABSTRACT
The current study aims to present the role of the National Credit Bureau (NCB) in supporting the credit decision process for financial institutions to help SMEs in accessing funding. Today, most lenders are finance institutions, and they are also the members of the credit bureau as defined by the credit bureau law, such as banks, non-banks, etc. They use credit information from the NCB to understand the ability and willingness of SMEs to repay their debts in order to calculate the appropriate credit limit for them. The Debt Service Ratio (DSR) is a key to calculating the credit limit with a proper credit risk assessment. The study will illustrate credit bureau operations in many aspects, such as its supporting role for financial institutions, the implications of credit information in their credit decision-making process, and the technology used in boosting SME finance. The study also brings up the issue of pain points and the solutions to resolve them.
