The usefulness of credit information record: some considerations about sharing system in Brazil.

Abstract

Over the past 30 years, the credit bureaus have assumed a central role in the financial infrastructure of economies around the world. The development follows the growth of information technology and the formation of competitive global financial markets. Few disagree that consumer credit and other information allow lenders to make smarter decisions - but this consensus does not consider some important additional questions such as: What data should be informed? Which sectors should be encouraged to report? Who can access the information and for what purposes? These questions confront policymakers, financial regulators and others who use credit data; however, they are rarely examined systematically in the context of regulatory reform, although there is a research body acting as a guide for decision-making on these issues. It was recently enacted Law 12,414 / 2011, which provides for the database training with due performance information, so-called positive list. Although the Act does not contain itself such a big thing, it seeks to establish clear rules on the provision of a much-needed service for the proper functioning of markets and, therefore, with positive consequences for economic activity in the country. This fact is welcome because it demonstrates the maturity of Brazilian society with regard to the organization of a modern credit market and a favorable information environment.