Page 137 - Special Topic Session (STS) - Volume 3

STS523 Shazura Z. A. et al.
customers to the Bank, where the Bank will provide to JPN the customer’s ID
to obtain the 12-digit NRIC number, if the individual profiles do not exist in
the Bank’s database. Upon receiving matched information on the 12-digit
NRIC of the customer from JPN, the Bank will disseminate the information to
the respective REs.
The purpose of this exercise is to facilitate accurate and consistent
reporting of ID numbers of the customers in REs’ statistical reporting
submitted to the Bank, where it aims to establish a unique identification of
individuals across the REs and at the Bank’s database. This integrated
information between REs, JPN and the Bank will be used to perform analysis
and surveillance as well as to formulate prudent credit policies by the Bank to
assist the REs in making informed and responsible lending decisions in a timely
manner. Furthermore, this information can facilitate the assessment on the
level of financial inclusion in Malaysia and support policy formulation to
ensure all economic sectors and segments of the society have access to
financial services.
As this exercise will establish a unique identification of individuals, it has
benefitted Centralised Credit Reference Information System (CCRIS), a system
developed by the Bank which collects credit information on borrowers from
participating REs and supplies the information back to the REs, where the
information will be used to assess customers’ creditworthiness from the credit
histories of potential/current borrowers. The unique identification provides
accurate reporting of credit exposure of individuals, hence, enables
participating REs in making faster and informed lending decisions. This
facilitates to further improve the quality of REs credit assessment and risk
modelling. In the national context, evidence-based lending decisions will
reduce instances of loan defaults and household indebtedness, both of which
are currently notable issues in the Malaysian economy.
Besides, the need for unique identifiers is reflected through the Financial
Inclusion Survey (FIS), a statistical reporting by REs to the Bank, established in
line with the Bank’s mandate in promoting a sound, progressive and inclusive
financial sector. The data collected via FIS, integrated with unique identifier
from this exercise, enables the Bank to accurately obtain the actual number of
Malaysian individuals who have access to various types of essential financial
services, namely deposit accounts, financing and insurance, and eliminate the
risks of double counting of individuals with multiple financial
accounts/products within and across the REs. Hence, this exercise enhances
the REs reporting to enable accurate assessment on the level of financial
inclusion in Malaysia and drive financial inclusion policies in targeting
financially-excluded segments of the population. This improves the overall
well-being of communities on the aspects of convenient accessibility, high
take-up, responsible usage and high satisfaction of financial services, which

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