Finance

AMCM: New credit platform refuses no legit application

The automated inter-bank credit inquiry platform does not refuse applications that have all required documents, the Monetary Authority of Macao (AMCM) has told lawmaker Ron Lam.

In one of his written inquiries, the lawmaker asked the authority about refused applications. Lam said that he has been told about such refusals.

In response, Acting President Lau Hang Kun of the AMCM assured the lawmaker that unless required documents are not submitted, the platform will not decline any applications. Lau said the inquiry platform has a list of required documents.

It became mandatory on Jan. 1 this year for banks to get their customers’ credit reports upon receipt of an application or the renewal of a loan. The credit report is available through the credit inquiry platform.

The platform contains details of a person’s credit history with local banks, such as credit cards, personal loans and mortgages. It was established for the convenience of banks to understand a person’s credit and their own risks.

Lau said the platform has mechanisms for follow-up, so that clients or banks can raise further queries on the issued report through the concerned banks within seven days of the issuance. As of the end of 2023, 26 such queries were recorded.

Lam said the establishment of the platform was postponed twice, and asked the AMCM for an explanation.

Lau said the platform was established on the same date the topical guideline came into effect, which was Jan. 1 last year.

However, she said the banking industry needed time to adjust their internal and computer systems to facilitate the new environment. As a result, there was a transitional period that concluded at the end of the last year.

Disclosing that the number of inquiries has risen constantly in the past year, Lau cited the industry for commending the platform for helping banks to better understand the credit quality of their clients.

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