Public Credit Registry Department
Public credit registry (PCR) department was established within the structure of Da Afghanistan Bank in 2008 under Financial Strengthening Project contract with World Bank. Its activities include registration of mortgage rights on movable properties and public credits registry funded by World Bank. PCR enforces its legal authorities as per banking law and Da Afghanistan Bank law and acts in light of DAB jurisdictions.
PCR is established to provide standard credit information in accordance with international standards and common banking principles to provide favorable credit services that would ensure mutual consent properly.
PCR comprises the following six sections:
• Public credit registry
• Mortgage rights registration
• Information technology
• Trade development
• Legal advisory
• Admin office
The main projects are:
Public Credit Registry
The objective of PCR is to establish a safe credit information system for the use of financial institutions, commercial banks, communication companies and relevant entities. Through this system, entities are able to find information on borrower’s credit history. Indeed, establishment of this system in the country’s banking sector is considered as an extraordinary initiative because it bears remarkable direct and indirect financial benefits in economy and trade and leads to economic growth and development in the country. The system is implemented with the cooperation of World Bank, international finance corporation (IFC) and Harakat organization. With the development of this system old style of obtaining information on borrower’s credit history through submitting of inquiry letters to concerning entity by commercial banks has ceased and now borrowers with higher credit worthiness could get loan with addition conveniences.
Registry of Mortgage Rights on Movable Properties
In emerging economies, small and medium size enterprises (SMEs) form the largest part of the private sector and provide the most employments. SMEs are also recognized as the main driver for economic growth and development in the country. Mortgage transactions on movable properties could be a basic medium for access to finances. For this purpose registry of mortgage rights on movable properties was established as per provision of article 48 of law on mortgage of movable properties in banking transactions and regulation on registry of mortgage notices on movable properties in order to register mortgage notices. The system aims to register mortgage rights on movable properties, confirm priority of mortgage rights and issue mortgage notices to inform third parties. Requirements for processing of registration of mortgage rights have been set to minimum in accordance with mortgage of movable properties regulation and there is no need for paperwork and approval by registry. Features of this system have been determined in line with modern banking standards.