QCB finds consumer, commercial delinquency on the decline in 2020
September 19 2021 08:15 PM
Qatar Central Bank

The consumer and commercial delinquency had declined year-on-year in 2020 despite Covid-19 induced lockdown in place for most part of the year, according to Qatar Central Bank (QCB).

In its 2020 annual report, the QCB said the Qatar Credit Bureau reported that the consumer delinquency (more than 90 days overdue) has decreased to 5.97% at the end of December 2020 compared to 6.14% the previous year.

The consumer credit stood at QR253.33bn at the end of 2020 compared to QR253.53bn the previous year.

In the case of commercial delinquency (more than 90 days overdue), the credit bureau reported that it had fallen to 4.75% at the end of December 2020 against 4.95% a year ago.

The commercial credit (excluding governmental entities and firms not registered with the Ministry of Commerce and Industry) amounted to QR261.72bn, showing a year-on-year growth of 6.09% in 2020.

Although 2020 witnessed the emergence of a unique set of challenges due to the Covid-19 pandemic, the QCB said the services of credit bureau continued without any disruption mainly due to its technology advancement and global standards.

The bureau issued a total of 402,127 credit reports, of which 86% or 347,821 was consumer credit reports and the remaining 14% or 54,306 was commercial credit reports in 2020 compared to 461,313 (428,316 and 32,997) the previous year.

The bureau had issued 369,408 credit reports (including 'dishonor cheque reports launched in September 2020) to member institutions in the review year.

"There were 69,076 dishonor cheque reports generated by members from its launch date till December 31, 2020," the report said.

The credit bureau had issued 33,079 self-enquiry credit reports to consumers in 2020 against 38,461 the previous year.

It accepted self-enquiry credit reports requests through online requests and delivered the reports to the customers through QPost.

The QCB annual report said the credit bureau has as many as 26 members from both banks and non-banks.

The bureau, which has completed 10 years of operations, provides accurate and comprehensive credit information, which helps to overcome the risk management challenges faced by its member institutions.

"Qatar Credit Bureau is continuously working to add new members from different economic sectors as well as designing new e-products, technological applications and services for the credit bureau members," the QCB annual report said.

As an authorised local operating unit (LOU) of the Global Legal Entity Identifier Foundation (GLEIF), the  Qatar credit bureau offer LEI services to consumers to create a new LEI/update LEI information/renew LEI on an annual basis/transfer LEI from an another LOU to the QCB's LOU online system.

The LEI accounts of 49 companies are with Qatar credit bureau as on December 31, 2020, which includes 28 new LEI accounts opened by companies through the bureau in 2020.

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