The Bank of Israel publishes a draft licensing policy for credit bureaus and business information bureaus
The Bank of Israel is today publishing drafts for public comments regarding the licensing policy and process for submitting a request for a credit bureau license and for a business information bureau license.
In order for there to be bureaus that will be able to provide the services set out by law on the day the Central Credit Register begins operation at the end of 2018, the Bank of Israel is today publishing drafts for public comments regarding the licensing policy and process for submitting a request for a credit bureau license and for a business information bureau license.
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 for the sharing of credit data. According to the law, the Bank of Israel will provide credit data from the Register to credit bureaus for the uses set out in the law, such as credit rating, credit report, or financial consulting to customers. In addition, the law regulates a business information service.
In order for there to be bureaus that will be able to provide services on the day the Register begins operation and the law comes into effect, it is already necessary to arrange the process of licensing the bureaus and to begin the licensing process. As such, the Bank of Israel is today publishing draft documents relating to the various stages of the licensing process, the criteria and principles for granting a license, and the form for requesting a license, including the accompanying documents that must be attached to it.
The publication of the draft licensing documents is intended to make the bureau licensing process transparent, encourage entities to submit license requests, and holding a preliminary dialogue as to how the credit bureaus and their work will be integrated with the Register as it is established.
Bank of Israel clarifies that credit bureaus are main players in the sharing of credit data, and they can make a significant contribution to the development of competition in retail credit market. The Bank of Israel will act in cooperation with the bureaus that will be established in order to achieve the objectives of the law. Bank of Israel calls on all entities interested in joining this opportunity created by the Credit Data Law to approach it as soon as possible in order to start the process of licensing and building the bureaus for the benefit of credit data users in general, and the Israeli consumer in particular.
Draft fot public comments - Application Forms and Related Documents
Draft fot public comments - Criteria and Principles for granting a credit data service license