Microfinance System Development Program

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The project aims to stabilize the Congolese financial sector, increase transparency in credit decisions, expand the range of financial services for MSMEs in a sustainable and efficient way, and ultimately improve access to credit for MSMEs. An efficient, centrally managed credit office is a very suitable instrument for this. Various studies demonstrate the positive correlation between the existence of credit offices and access to credit. The establishment of a credit office that records and makes available comprehensive, credit-relevant data electronically and promptly is also an important component in the DRC for promoting small customer business by financial institutions. The centralized collection of credit information by the credit office gives borrowers the opportunity to build up a credit history and thus qualify for higher loan amounts over time. The credit history enables financial institutions to better assess the borrower and, in the medium term, to expand their lending and the volume of credit they offer. Based on the know-your-customer principles, but also on responsible finance criteria (responsibility to avoid excessive indebtedness of borrowers), this is a key developmental effect of the credit bureau, such as the reduction of loan defaults on the part of financial institutions (reduction of loan defaults). Furthermore, there is a significantly improved data situation for the central bank, so that it can fulfil its supervisory function. Experience has shown that the establishment of a credit bureau also includes the introduction of a personal identification system, so that further services for other development-relevant areas can be expected.