Making Banking Safer
Brazil's Central Bank has worked successfully with the country's private banks to build a new system to monitor lending across the financial markets.
The Brazilian government has been working hard for some time to make it easier for banks to increase lending safely. The new Credit Information System (SCR), which the Central Bank launched in June, is an important milestone in this direction. The Central Bank's efforts began almost a decade ago with the introduction of its Credit Risk Center, the SCR's predecessor.
The Central Bank first launched its Credit Risk Center in 1997 in an effort to further develop an emerging credit information system. Using the Central Bank's Sisbacen's IT infrastructure and 3,270 dedicated terminals, the system focused initially on meeting demands of bank supervisors who needed better data on bank lending.
At the same time, an important change in the Central Bank's approach to bank regulation was taking place as it began shifting from an accounting and regulatory view to a more risk-focused one. This new supervisory process, known...
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