Govt. calls on banks not to eliminate borrowers only on CRIB

The Government yesterday called on banks to consider a variety of criteria when evaluating loans, while appealing for financial institutions not to eliminate proposals solely based on whether the

State Minister of Development Banks  and Loan Schemes  Shehan Semasinghe

applicant is included in the Credit Information Bureau (CRIB). “The CRIB is not an institution which proposes to grant or refuse loans to a person, but only provides information on the credit quality of a customer,” State Minister of Development Banks and Loan Schemes Shehan Semasinghe said yesterday.  He made these remarks at a discussion held with heads of banking institutions under the Ministry of Finance and Planning at the Finance Ministry yesterday.

“Some banks have used this CRIB report as a way to deny loan applications. The CRIB is the independent publisher of loans and related information. They do not recommend giving loans to any person. Similarly, the Bureau does not blacklist anyone. Customers, especially SMEs, should be made aware of this,” the State Minister pointed out. He also said that they hope to conduct a series of business awareness programs with the help of both State and private banks throughout the country particularly focusing on SMEs.

Top officials from Regional Development Bank (RDB), State Mortgage and Investment Bank (SMIB), Housing Development Finance Corporation Bank (HDFC), Export Credit Insurance Corporation of Sri Lanka, CRIB and Development Finance Department were also present.