International Committee on Credit Reporting (ICCR) (2)

World Bank (2)

Topics and Issues

COVID-19 (26)

Data Suppression (14)

During the COVID-19 pandemic, global financial authorities have been encouraging full reporting, and not suppression.  Early in the global pandemic, the World Bank, through its International Committee on Credit Reporting (ICCR), issued a policy statement.  To help “safeguard…the integrity of credit reporting systems,” regulators should “[p]romote continued full (file) sharing of credit information including reporting of missed payment data arising due to the crisis, with the necessary safeguards that ensure that there is minimal or no effect on the data subjects’ credit history and score.”  To “safeguard…borrowers,” regulators should make sure there are “different technical reporting solutions e.g. special credit reporting codes, identifiers or conventions (such as freeze payment status) for reporting facilities that are under an agreed forbearance or deferred payment status window.”   Treatment of Credit Data in Credit Information Systems in the context of the COVID-19 pandemic, International Committee on Credit Reporting (ICCR), April 6, 2020.

The World Bank wrote that “[a]ccess to reliable credit information supports lending decisions, data-driven policy formulation, and compliance with Basel and other financial sector standards. Inaccurate and untimely data may result in creditors losing trust in credit information, which could slow the recovery from the crisis.”  The World Bank also noted that “[g]iven the connection between fiscal, monetary, and prudential policies, governments should take a coordinated and holistic approach to policy formulation and implementation in a manner that preserves the integrity of credit information sharing systems.”  Why credit reporting matters in formulating policy during COVID-19 response and recovery, Pratibha Chhabra, Shalini Sankaranarayanan, Collen Masunda, World Bank, June 3, 2020.