The establishment and management of a credit data register, and supervision and regulation of the credit data sharing system
Pursuant to the Credit Data Law, 5776–2016, the Bank of Israel has received the regulatory authority to establish a system for sharing credit data.
Experience worldwide shows that many countries hold and maintain credit data sharing systems, with the objective of supporting a competitive credit market, thereby promoting the good of the individual and the good of the economy as a whole. Credit data sharing systems can contribute to increasing the sources of credit, greater credit availability for households, encouraging improvements in the terms of credit, reducing inequality in the economy, optimum management of systemic and prudential risks, and reducing the default rate.
In 2018, the Bank of Israel will launch a credit data sharing system, in accordance with the requirements of the law, will grant licenses to credit bureaus that are expected to begin operation toward the end of the year, will supervise the credit bureaus that will be given access to information and the sources of information, and the users that will connect to the register or to the bureaus, will complete the main regulation process of the credit data sharing system, and will begin a public information and financial education campaign with the aim of helping the public generate the greatest benefit from the system. At the same time, the bank will solidify the operations of the organizational functions established pursuant to the Credit Data Law.