Reserve Bank Deputy Governor Viral V Acharya has proposed the creation of a Public Credit Registry — an extensive database of credit information — for analysing, addressing and preventing in future the twin balance-sheet problems of banking and corporate sector.
Reviewing the supervisory and statistical databases relating to bank credit, Acharya said that linking them with financial results of the corporate sector and employing unique borrower-level identifiers could lead to incisive research and insights on monetary policy transmission to the real economy. “The creation of a large Public Credit Registry will help the supervisor to monitor delinquencies more effectively, bring in efficiency in the credit market by helping the lenders in appraisals and monitoring of the loan portfolio, and help the cause of financial inclusion of the small businesses and individuals by allowing them to establish their reputation via the registry,” Acharya said while addressing the ‘11th Annual Statistics Day Conference’ here.
In his inaugural address, RBI Governor Urjit R Patel observed that there was a continuous effort to improve measurement, modelling and prediction of economic outcomes and developments. He stressed the “information base” part of the theme of the Conference since the collection and analysis of detailed data aid in designing better targeted responses in a variety of settings in practice and policy.
The Governor also acknowledged that the present times are interesting for economic analysis and it is useful to deliberate and reflect on key areas of special interest such as understanding global spill-over effects, estimating and forecasting in the presence of high volatility and structural breaks, analysing the impact of macroeconomic developments on distributional aspects, developing new information bases, and optimising the available information to improve the robustness of estimates.