In accordance with the Central Credit Register Act (Official Gazette of the Republic of Slovenia, No. 77/16; "ZCKR"), the Bank of Slovenia established a centralised database of the indebtedness of private individuals and business entities (Central Credit Register; "CKR") in order to enable more efficient managing of credit risks and ensure more vigilant lending.
In this regard, an electronic system for exchange of information was set up and became operative on 3 January 2017. The already existing information system ("SISBON") for retail borrowing is now supplemented by the information system for the exchange of information on indebtedness of business entities ("SISBIZ"). Both information systems are managed by the Bank of Slovenia and accessible through its website under the subpage "Central Credit Register".
Data are reported by banks, savings banks and other lenders whose core activities are crediting, the provision of financial leasing, real estate leasing or factoring services. Furthermore, also payment service providers, the Bank Asset Management Company (i.e. the Slovenian bad bank), the Housing Fund of the Republic of Slovenia, the Eco Fund, and the Ministry of Finance’s Public Payments Administration are required to report data to the CKR. Additionally, other lenders providing consumer lending services are able to join.
The information collected within the CKR include basic data regarding borrowers and data on credit transactions, while in the case of business entities the Bank of Slovenia may also request additional information on forborne exposures, performing or non-performing exposures and their classification. Security of data is ensured by imposing mandatory technical and security requirements for all members, and by monitoring when, by whom, and for what purpose the data were accessed. The borrowers are also able to access their individual data in the system, further strengthening security and correctness of the information exchange mechanism.
Upgrading the current system will certainly help to provide lenders with a better oversight of borrowing by individuals and businesses, and thus strengthening macro-prudential supervision and financial stability in Slovenia. Moreover, as the establishment of CKR also represents part of actions in the European banking area, the CKR will help in the creation of a single database on bank loans in the euro area, known as the Analytical Credit Datasets (AnaCredit).