Temporary Order – Maintaining information in order to provide it to the Central Credit Register (in Hebrew)
Circular- Central Credit Register (in Hebrew)
Following the legislation of the Credit Data Law, 5776–2016 by the Knesset, the Bank of Israel is acting to establish a Central Credit Register (CCR). The CCR will expand the positive information available to lenders wishing to evaluate a customer’s credit risk level, will increase accessibility of credit, and will encourage competition in the retail credit market.
In order for the register to contain—on its first day of operation—sufficient depth and breadth of information, it is important to start the construction of the basis for the information to be reported to the CCR. Therefore, the Bank of Israel is today publishing a temporary order detailing the data held by the banks and credit card companies that they will need to report to the register. The data fields listed in the temporary order are based on the requirements of the law and on accepted practice in similar registers already existing around the world. The decision regarding the information to be reported has been made while striking a balance between the benefit derived from the use of the information for the purposes for which it was established, and minimizing the impact to privacy that is inherent in the register. The information that will be gathered and kept in the register belongs to consumers, and only they may grant agreement to use it.
In addition, the Bank of Israel is currently setting the licensing policy for credit bureaus that will, among other things, issue credit ratings on the basis of the information stored in the register, with the aim of establishing the licensing process in 2017. The Bank of Israel calls on parties interested in obtaining a credit bureau license to apply to the Bank of Israel soon in order to enable preliminary dialogue regarding how the bureaus and their work will be integrated with the register.
Bank of Israel Director General Mr. Hezi Kalo said, “The project is in its specification stages and before the publication of the tender for selecting a supplier who will assist in the establishment and operation of the register. The Bank of Israel will allocate substantial resources to maintaining privacy and information security, and will act to ensure that the risks inherent in the establishment of such a register will be minimized, and that consumers will be able to derive the greatest benefit from it.”
Bank of Israel Deputy Governor Dr. Nadine Baudot-Trajtenberg said, “The establishment of the CCR is a significant step in the efforts to promote competition in the credit market in Israel. It is a complex process, and we are managing it in constant consultation with the relevant authorities in Israel and with colleagues abroad.”