FIRST NATIONAL BUREAU OF CREDIT HISTORIES

1

• FIRST NATIONAL BUREAU OF CREDIT HISTORIES
• as a crucial element of credit market
• Kyiv city
  September 29, 2006

2
FNBCH Shareholder Structure

• 32 banks
• 2 insurance companies
• Ukrainian Banks Association
• CreditInfo Group
• By estimates, FNBCH holds 70 market share

3
FNBCH List of Shareholders
Banks Aval Agrobank Agrokombank Brokbusinessbank
VABank Vneshtorgbank (Ukraine) Derzhoschadbank Do
ngorbank Industrialbank Credit-Dnepr
? Creditprombank
International Mortgage Bank MRIYA NADRA NRB-Ukrai
ne First Investment Bank Pivdenny ProCredit
Bank FUIB Raiffeisenbank Starokyivsky bank
TAS Investbank TAS Commerzbank Transbank UIB U
krgazbank Ukreximbank UkrSibbank Ukrsotsbank
Finansy I Kredit Forum Electron Bank
Insurance companies Insurance group TAS
CREDO-CLASSIC
Ukrainian Banks Association
CreditInfo Group
4
Potential Participants

• FNBCH offers an open system which may include
  corporate entities from various sectors of the
  economy
• banks
• insurance companies
• leasing companies
• credit unions
• communication
• trading companies, selling goods for deferred
  payments

5
Corporate Policy

• Minimal interference with decision-making
  processes of individual participants
• Maximum shareholding of each participant in the
  bureaus statutory capital is 9 (actually less
  than 5, as of today)
• Supervisory Committee made up of representatives
  of banks and insurance market make decisions on
  key issues

6
Securing Information

• Means of security are based on
• Best international practices
• Technical novelties
• Experience of securing banking information
• Organizational and technological measures to
  secure from sampling information about banks and
  clients
• The server facilities arranged and equipped in
  accordance with NBU requirements

7
Pricing Policy

• pricing policy is offered and approved by the
  Supervisory Board, i.e. participating banks
• Tariffs depend on volume of
• submitted information
• used information
• System of free service and reduced rates during
  first year of operation of the Bureau

8
Worldwide Experience

• FNBCH meets highest worldwide standards of
  running credit bureaus by
• Quality of its products
• Product portfolio
• Personnel
• Office and equipment

9
Basic Products

• Databases of credit bureau
• Credit reports on individuals and legal entities,
  positive and negative information
• Expanded credit bureau
• Monitoring
• Customized credit reports
• Usage of public registries
• Insurance
• Credit bureau scoring
• Scoring (system of credit scores) of credit
  bureau
• Loan applications processing
• Processing and evaluation of loan applications
• Credit bureau connector
• Simplified automated access to credit bureaus
  database
• Evaluation of credit bureaus reports
• Preparation of reports on loan applications

10
Basic Products

• Exclusive rights on the territory of Ukraine to
  sell jointly with CreditInfo to third parties the
  following products
• loan application processing
• overdue payments collection
• credit bureau connector
• scoring modeling

11
FNBCH in 2006

• 1 priority in the development of the credit
  bureau is to put into operation a data base which
  would ensure credit information sharing between
  lenders
• Principle of reciprocity in info sharing

12
FNBCH in 2006

• Database Implementation Schedule
• signature of contracts with CreditInfo June
  2006.
• create an asset base of FNBCH to ensure smooth
  operations of the bureau September 2006.
• transfer the database for testing mode and begin
  connecting bank to the bureau (installation and
  initial data exchange) October 2006?.
• have the database up and running at industrial
  capacity November 2006.

13
FNBCH in 2006

• Connecting banks to the bureau
• offer to banks an information exchange format
• assist banks in the development of downloading
  data system from ABS
• train banks employees in handling credit
  reports
• close agreements with banks
• Formation of a backlog for 2007
• development of products for insurance market
• attraction of new participants and users, and
  increase of statutory capital
• begin working on loan application processing
  tools
• PR and public awareness campaigns

14
Types of Credit Reports in 2006.

• Once launched, the credit bureaus database will
  be ready to generate a few credit reports
• blank form credit report
• Basic credit report
• standard credit report
• extended credit report

15
Standard Credit Report - 1
16
Standard Credit Report - 2
17
Standard Credit Report - 3
18
Standard Credit Report - 4
19
Conclusions

• Retail lending market is developing dynamically.
  Its players feel an acute need for access to
  information about borrowers
• Only credit histories bureau can provide this
  information in full scope
• FNBCH
• Is the largest credit bureau in Ukraine
• Founded based on worldwide best practice
• Open for cooperation