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At the end of last year, the ANBC (National Association of Credit Bureaus), on behalf of the sector, delivered to the economic team of the new government a open letter on the importance of stimulating credit in a sustainable way for the consistent resumption of economic growth.
In order to reduce the banking spread, thus making credit cheaper and enabling financial inclusion, i.e. giving more Brazilians access to loans and financing, the approval of the bill that changes the rules of the Positive Registry is essential. PLP 441/2017 is waiting for the Chamber of Deputies to vote on its highlights and amendments.
The new CP automatically includes all consumers, with the possibility of leaving at any time. This model, called opt-outIt has been successfully adopted in more than 70 countries. It allows for the creation of a registry of information that favors the entry of new competitors into the credit market, such as the fintechs, cooperatives and the retail sector. This situation stimulates competition in the financial sector. The model opt-out It also makes it possible to increase the volume of credit available and differentiate the interest rates offered by financial institutions to individuals and companies. This logic especially benefits good payers, who can obtain fairer interest rates on their loans.
The Positive Registry for all is an inclusive measure because, if approved by Congress, it will help those who are on the margins of the credit system because they have no credit history. There are many Brazilians who have no way of proving their income, but who have regular monthly consumption bills, such as water, electricity, telephone and gas. The new CP will make it possible to calculate the behavior and payment potential of these people, based on their pattern of consumption of these public services.
Industry studies published last year have already estimated the gains to be made from the approval of the new Positive Registry. For society, a reduction of up to 45% in delinquency, which currently affects around 63 million consumers, as well as the inclusion of around 22 million people in the credit market, equivalent to more than 10% of the Brazilian population.
For the economy, an increase in GDP of 0.54% per year, with an injection of up to R$ 1.1 trillion into the market in the medium and long term. Companies of all sizes could benefit from an expansion in credit of around R$ 790 billion.
For the government, this is a real boost for the public accounts, which are going through a troubled time. The change in the CP law should gradually increase the collection of federal taxes and contributions by up to R$ 450 billion, without the need for any change in tax rates. The states will also gain revenue, with an increase of R$ 205.7 billion in the collection of ICMS and IPVA, due to the growth in economic activity.
Just as important as stimulating the credit market is respect for the rules laid down by the legal system. The bill amending the CP is in line with banking secrecy rules, since only the consumer's credit score will be made available, and it is the consumer himself who authorizes the opening of his information to the creditor.
As I wrote earlier, borrowers who don't want to be part of the Register will be able to ask to be excluded from it at any time and will have several ways of doing so. Another important aspect: all the institutions that make up the CP, such as database managers, information providers and those who consult it, will operate in accordance with the Consumer Protection Code and the Personal Data Protection Act.
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By: Elias Sfeir President of ANBC & Member of the Climate Council of the City of São Paulo & Certified Advisor
