(Ecofin Agency) - In a release published on December 13, 2018, the central bank of Mozambique announced that it has allowed the South African credit bureau Compuscan to operate in the country to try to reduce credit risks.
Compuscan Mozambique is also to gather data on banks and financial institutions clients’ loans and their credit profiles. This “will allow creditors to evaluate and improve risk management, in addition to contributing to the reduction of over-indebtedness”.
Compuscan’s services will be supervised by the central bank of Mozambique.
Founded in 1994, Compuscan operates in many countries such as the Philippines, Australia, Uganda, Ethiopia, Lesotho and Botswana.
A credit bureau is an institution that gathers information on the loans and credit profile of banks’ clients. These banks use those information to optimize their credit risks. In that regard, credit bureau helps decrease the rate of bad debts affecting banks.