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Oct 11, 2010 (LBO) - Sri Lanka's Credit Information Bureau (CRIB) is to launch an 'e-alert' service using mobile phones and email to warn banks of defaulters who have borrowed from more than one bank, an official said.

Furthermore, there are also no detailed reports being exchanged now on monthly loan installment payments by borrowers. The service using mobile phone short-message service and electronic mail will be launched by the end of October, CRIB general manager Gamini Karunaratne told Vimasuma.
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It aims to reduce loan defaults and improve the efficiency of the financial system, he said.

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"If a borrower misses a loan instalment payment we will use the e-alert system to quickly inform other banks from which he has borrowed," Karunaratne said.

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"E-alerts will be used to inform banks when the loan is paid back as well."

CRIB collects information on both individual and institutional borrowers.

However, it now takes some time for banks to get a credit history report on borrowers from the CRIB.

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