Public Credit Register version 1.4

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The Belgian public credit registersBeijing,
September 29, 2004

• Jean HILGERS
• Director

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Topics

• Belgium Belgian credit market for individuals
• Belgian credit registers
• the public CR the central office for credits to
  private individuals
• main characteristics
• recent developments

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Belgium key data

• 10 million inhabitants
• 35 000 square km
• capital city Brussels
• (EU Commission HQ)
• GDP 2003 267.5 billions of euro
• inflation 2003 rate 1.7
• currency EURO

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Credit market for individuals (end 2003)

• 6.6 million credit contracts
• outstanding

(billions of euro)

• mortgage credits 80.5
  billions
• consumer credits 13.4 billions

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Indebtedness level

• 4.5 million people with at least one credit
• (52 adult population)
• Belgian households debt indicators
• outstanding as of disposable income 66.0
• outstanding as of total assets 8.5
• moderate level of indebtedness

(2003)
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Payment defaults (06/2004)

• 9 of the borrowers recorded with payment
  arrears on credit
• default rate
• consumer credits 9.9
• mortgage credits 2.4
• concern for the public authorities

( contracts)
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Belgian credit registers till 09/2004

• private one register
• managed by lenders organization (UPC)
• negative data on credits to individuals
• public two registers
• managed by National Bank of Belgium
• the central corporate CR
• the central office for credits to private
  individuals

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Central office for credits to private individuals

• history
• goals
• legal basis
• exhaustive
• compulsory consultation
• privacy protection
• guidance committee

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History

• 1987 only negative data on consumer
  credits
• 1993 inclusion of negative data on mortgage
  loans
• 1999 inclusion of data on collective debt
  settlements
• 06/2003 upgrade to a positive register

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Goals

• preventive tool for striking against
  over-indebtedness of consumers
• support tool for responsible lending

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Legal basis

• specific law
• defines
• data recorded (pos neg)
• acces rights/obligations
• costs recovery principle
• guidance committee

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Consultation of the register

• mandatory before granting consumer credit or
  mortgage loan
• allowed for monitoring of outstanding contracts
• prohibited for marketing

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Privacy protection rules

• official notification at the first registration
• inspection right
• rectificationright

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Guidance committee

• advice and decision-making body
• composition 7 members
• 1 Minister of Economy representative (chairman)
• 3 lenders representatives
• 1 consumers organizations representative
• 1 privacy Commission representative
• 1 NBB representative

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Guidance committee
Advice
Decision

• budget
• working procedures
• implementing orders
• statistical reports

• PL accounts
• technical instructions
• structure of tariffs/rates
• cross-border exchanges

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Full costs recovery

• CR managed as a non-profit organization
• expenses investment and running costs
• revenue credit report fee

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Key statistics (06/2004)

• number of participants 250
• updating 4.3 million/year
• consultation 6.0 million/year
• file volume
• 4.5 million people
• 6.6 million credit contracts

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Recent developments

• merge UPC CR data
• expected benefits
• for the lenders
• reducing global costs
• cheaper consultation fee
• for the consumer
• one single point of contact
• better privacy control

(09/2004)
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Cross border data exchange

• why ?
• EU single market policy Euro
• Internet
• cross border data exchange
• with The NetherlandsBKR (since 1999)
• with Germany Schufa (Q1-2005)

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Why the NBB?
legal mission
transparency
skill
neutrality
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Conclusion the central register

• a better protection against over-indebtedness
• added value for
• the lender
• the consumer
• the authorities

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Questions?
cr_at_nbb.be
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