Brazil
Credit Information System
The use of microdata in credit statistics
Porto, June 20-21, 2013
Credit Information System (CIS)
1. Overview
2. Banking supervision
3. Credit bureau
4. Credit statistics
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Financial Inclusion
Increased access to financial services
82% of municipalities had less than 5 points per 10,000 adults in 2000.
In 2010, 94% were above this level.
2000
# of points per 10,000 adults
(% of municipalities)
0 (20%)
2010
# of points per 10,000 adults
(% of municipalities)
0 (0%)
>0 to 2 (22%)
>0 to 2 (0%)
>2 to 5 (40%)
>2 to 5 (6%)
>5 to 10 (16%)
>5 to 10 (29%)
>10 (2%)
>10 (65%)
Bank branches, bank advanced outposts (PAA), credit cooperatives
(headquarters and outposts) and correspondents
Sources: BCB / IBGE
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Credit Information System (CIS)
Overview
CIS is a credit register which gathers information from all credit operations
granted by the financial system.
Implemented in 1997. CIS Phase 2 implemented in 2012.
Managed by the central bank with information provided by financial
institutions;
Includes aggregated data covering 100% of the financial system’s credit
operations, plus individualized data from each single operation of borrowers
with total exposure against the financial system over R$ 1,000 (c. USD 500);
Main purpose is to provide the central bank’s supervision with a wide range
of information about credit operations, allowing for detailed assessment of the
soundness conditions of all financial institutions thus contributing to the
protection of deposit holders and the stability of the financial system.
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Credit Information System (CIS)
Overview
Aggregated data covers 833 million credit operations (100%)
Individualized data on 334 million operations (288 million to
households, 46 million to enterprises)
37 million inquiries by financial institutions every month
Individualized data covers (March 2013):
98.6% of financial system’s total outstanding credit
65.6 million borrowers (62.1 million individuals, 3.5 million
enterprises)
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Credit Information System (CIS)
Banking supervision
Available data allows for multi-dimensional assessments:
of individual borrowers
of individual financial institutions
of each economic sector
of the whole financial system
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Credit Information System (CIS)
Credit bureau
Financial institutions have access to information on prospective
borrowers, allowing them to assess clients’ credit history and total
indebtedness;
Availability of such information favors credit quality contributing
for financial sustainability and the reduction of interest rates.
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Credit Information System (CIS)
Credit statistics
Availability of individualized data on credit operations makes the
CIS a very powerful database;
This capability have been enhanced after the extension of CIS
coverage after the reduction of the threshold for data on individualized
operations from R$ 5,000 to R$ 1,000 (USD 2,500 to USD 500).
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Credit Information System (CIS)
Available information – borrowers
identification;
address;
size / income class of enterprises / individuals;
type of control (enterprises);
annual turnover (enterprises);
participation in conglomerates (enterprises);
history of relationship with the financial institution;
risk rating
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Credit Information System (CIS)
Available information – credit operations
origin of funding
nature of interest rate: prefixed, floating, inflation-indexed
currency
type of operation: auto loans, housing, credit card, overdrafts,
working capital, etc.
origin of operation – granted at the same institution or acquired
loan loss provision
days overdue
interest rates
risk rating (operation)
instalments’ timetable
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Credit Information System (CIS)
Available information – credit operations (cont’d)
original value of the operation and outstanding balance
specific features: e.g. renegotiation
additional info: credit assignment, write-offs
guarantees: nature, original value, revised value
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Credit Information System (CIS)
Regional credit statistics
based on postal code of borrowers
compilation began in 2007
breakdowns for 5 geographical regions and 27 states
balances, NPLs
Regional credit - balances by region
Regional credit - NPLs by region
R$ billion
%
1,4
7
1,2
6
1,0
5
0,8
4
0,6
3
0,4
2
0,2
1
0,0
0
mar/04 mar/05 mar/06 mar/07 mar/08 mar/09 mar/10 mar/11 mar/12 mar/13
North
Northeast
Center West
Southeast
South
mar/04 mar/05 mar/06 mar/07 mar/08 mar/09 mar/10 mar/11 mar/12 mar/13
North
Northeast
Center West
Southeast
South
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Credit Information System (CIS)
Real estate collateral value index
measures the long term trend of housing prices based on the
appraisal values of residential units financed in 11 metropolitan
regions
published in March 2013
Real estate prices
12-month real growth (%)
25
20
15
10
5
0
jan/09
jul/09
jan/10
jul/10
IVG-R
jan/11
jul/11
jan/12
jul/12
jan/13
FipeZap
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Credit Information System (CIS)
Credit quality data
Individualized data on credit operations allows for the compilation
of LTV (loan to value) and credit vintage statistics which are important
for assessments of financial stability;
In the end of 2010 high LTVs in auto loans were associated with an
marked increase in NPLs, calling for the introduction of
macroprudential measures which basically aimed at stimulating
banks to lower LTVs;
Credit vintages data provided valuable information on the evolution
of NPLs before and after those measures
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Credit Information System (CIS)
Credit quality data
Auto loans - NPLs by vintage
%
10
8
6
4
2
0
fev/10
jun/10
out/10
4 months
fev/11
jun/11
6 months
out/11
9 months
fev/12
jun/12
12 months
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Credit Information System (CIS)
Under construction
Credit statistics (e.g. indebtedness) with breakdowns according to
the size of enterprises or the income class of households;
Sectoral data: CIS data can be matched with a statistical
classification of economic activities to provided detailed information
on sectoral destination of credit.
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Credit Information System (CIS)
A lot of work to be done
The sheer size of the database magnifies the necessity of heavy
IT support for statistical compilation using individualized operations
data;
Quality control is an issue ...
... But there is a wide range of possibilities for the compilation of
credit statistics from CIS.
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Thank you!
Obrigado!
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