Credit information is the most essential part for banks and there are certain sources of credit information of banks. The following paragraph is discussed about the source of credit information.
The banker has to collect information from different sources about a prospective borrower to assess creditworthiness. There were no such specialized credit agencies in Bangladesh that could assist banks by giving reports on the borrower.
Even a report on a borrower obtained through banks in Bangladesh was usually brief and sketchy and did not give sufficient information that could be of much practical use except that an adverse report may give a warning signal.
Our country needs to establish credit agencies like that of British or American type so that healthy business activities can be smoothly financed by bankers.
Bangladesh Bank, however, established a Credit Information Bureau in 1992 with a view to collect all sorts of data about borrowers to assess their creditworthiness to strengthen credit discipline.
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