The Caribbean Community (CARICOM) Policy on Credit Reporting promotes the establishment of a harmonised legal framework for regulating the credit reporting system in Member States and facilitating the cross-border exchange of credit information as an important component of the infrastructure for the effective functioning of the CARICOM Single Market and Economy (CSME). The Policy is aimed at promoting the modernization and efficient functioning of the credit market in Member States within an environment of optimal risk management and the protection of the rights of the consumer. An effective credit reporting system enables better risk management and credit decisions and incentivises borrowers to engage in better payment behaviour thereby contributing to financial inclusion and stability. State of Play of Credit Reporting in CARICOM Member States. Credit reporting refers to the collection, collating, scoring and dissemination of credit information by credit bureaus and credit registries.
Contemporary credit reporting systems are generally established under a facilitative legal and regulatory framework which is proportionate and predictable while promoting transparency, non-discrimination and the protection of consumer rights. However, regulated credit reporting systems in CARICOM are a relatively new feature of the financial landscape. Within the last three years, legislated credit reporting regimes, which had previously existed in only two (2) Member States, have emerged or are about to be established in all CARICOM Member States. Notwithstanding, these regimes are all operable within national boundaries (except the OECS which has a sub-regional framework) and do not allow for cross-border exchange of credit information.