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The World Bank's annual study points to the importance of bureaus for the global evolution of credit
Depth of information and guaranteed operations are crucial tools for improving the credit environment
São Paulo, April 14, 2021: The greater or lesser ease with which a country offers business is a determining factor for organizations all over the world when deciding where to invest and maintain their businesses. undertakings.
In order to compare the regulatory environment between different nations and thus help organizations make decisions, the World Bank has been organizing Doing Business since 2003, a ranking that classifies countries according to their ease of doing business. Particularities that have an impact on doing business in different countries are assessed, from obtaining a permit to build a business unit to the process of paying taxes, including access to credit.
On a scale of zero to 100, the Brazil achieved a score of 59.1. The lowest score was in relation to paying taxes, where Brazil scored 34.4 points and came last, while the highest score was received in the process of starting a business (81.3 points). When it came to analyzing the process of obtaining credit, Brazil scored 50 points, also on a scale of zero to 100.
Two issues were assessed in relation to the work environment. credit. The first is the depth of credit information, measuring the breadth, coverage and accessibility of this data. Making credit information available for individuals and companies, positive and negative, for example, counts for points, as does the number of individuals and companies listed in credit bureaus.
In this regard, Brazil achieved the highest score, alongside 53 other countries. According to the report, the percentage of individuals with some credit information in the bureaus, taking the five-year horizon, was 81.2%, a figure above the average percentage observed among the countries in the OECD (Organization for Economic Cooperation and Development), which reached 66.7% in the latest survey.
The second concerns the degree of protection for borrowers (those who take out a loan) and lenders (those who grant a loan) in bankruptcy and security legislation. This aspect analyzes, for example, the possibility for a creditor to enforce his right to a guarantee out of court, by agreement between the parties, and the possibility for secured creditors to have priority in payment in the event of liquidation of the debtor company.
In the opinion of Elias Sfeir, president of the National Association of Credit Bureaus (ANBC), through guarantees, credit granting institutions are able to limit losses in the event of default. “In this sense, regulatory progress could, more than raising Brazil's score in the world ranking, reduce the cost of credit at the end, reducing legal uncertainty and stimulating the formation of new businesses,” he says.
The document also shows the importance of bureau activity and the evolution of this sector around the world. In 2005, only 67% of economies had private credit bureaus or public loan registries. In 2019, this percentage rose to 88%.
“The data collected by the institution also suggests that the presence of bureaux is associated with a higher level of credit as a proportion of GDP,” concludes Sfeir.
ANBC Press Relations
Regina Pimenta: (11) 98136.6835 regina@pimenta.com
Ana Carolina Rodrigues: (11) 98674.0348 anacarolina@pimenta.com
