The Bureau provides a highly predictive ratings system that calculates the likelihood of an SME defaulting within the next 12 month period. The robustness of the ratings is unparallel as the ratings model was formulated based on five years of historical data, collated from over 200,000 Malaysian SMEs. As such, The Bureau is in a unique position to assess the impact of a very broad range of SME characteristics have on the likelihood of default in the future and provide a predictive tool of the highest quality.
Provide Industry Benchmarks
The Bureau's ratings provide a Percentile Value, which indicates the ranking of a particular SME, relative to the whole SME population in Malaysia. This facilitates industry benchmarking for more effective credit management and efficient decision making.
Risk Management Tool
Financial institutions supported by The Bureau's comprehensive products and services are able to strengthen their risk management for SME loan portfolios. Our credit reports and ratings can help quickly assess a company's credit standing and payment capabilities. Financial institutions will also be able to gain better understanding of their prospects credibility, further improve their credit evaluation efficiency, lower cost of operations and strengthen asset quality.
Complement Internal Rating System
The Bureau's ratings system is based on a highly predictive and sophisticated statistical model designed to complement Financial Institution's internal rating systems. The Bureau's model was developed based on a very large sample size of SME data to ensure an accurate representation of the Malaysian SME population. To further optimize the ratings model's robustness, five years of historical data were used to establish key micro-economic drivers of default. The result is a highly predictive, robust, flexible and cost effective rating tool that can be incorporated as part of financial institutions risk management process.
One Stop Centre For Credit Information And Ratings
Previously, financial institutions have to obtain and verify the information individually from numerous different sources. By providing a 'one-stop' access to all the relevant credit information on SMEs, The Bureau will contribute to faster processing of applications. Hence, decisions can be made more efficiently and quickly to benefit the financial institutions and their customers. The availability of The Bureau's ratings will also contribute significantly to improve turnaround time.
Access To SME Trade Credit Data
The Bureau provides an information sharing platform for all relevant parties, including financial institutions, other credit grantors, such as suppliers, credit & leasing companies, telcos, utility providers and SMEs to supply and access comprehensive, reliable and credible information. For financial institutions, the availability of additional data from these other credit grantors will definitely facilitate more objective and balanced credit assessment on SMEs.