Credit bureaus between risk-management, creditworthiness assessment and prudential supervision

"This text may be downloaded for personal research purposes only. Any additional reproduction for other purposes, whether in hard copy or electronically, requires the consent of the author. If cited or quoted, reference should be made to the full name of the author, the title, the working paper or other series, the year, and the publisher."This paper discusses the role and operations of consumer Credit Bureaus in the European Union in the context of the economic theories, policies and law within which they work. Across Europe there is no common practice of sharing the credit data of consumers which can be used for several purposes. Mostly, they are used by the lending industry as a practice of creditworthiness assessment or as a risk-management tool to underwrite borrowing decisions or price risk. However, the type, breath, and depth of information differ greatly from country to country. In some Member States, consumer data are part of a broader information centralisation system for the prudential supervision of banks and the financial system as a whole. Despite EU rules on credit to consumers for the creation of the internal market, the underlying consumer data infrastructure remains fragmented at national level, failing to achieve univocal, common, or defined policy objectives under a harmonised legal framework. Likewise, the establishment of the Banking Union and the prudential supervision of the Euro area demand standardisation and convergence of the data used to measure debt levels, arrears, and delinquencies. The many functions and usages of credit data suggest that the policy goals to be achieved should inform the legal and institutional framework of Credit Bureaus, as well as the design and use of the databases. This is also because fundamental rights and consumer protection concerns arise from the sharing of credit data and their expanding use

The Rocinha Favela as a Paradigmatic Case Study of Informal Settlements in Large Cities: Current Situation and Past Slum-Upgrading Programmes

Located between two of the wealthiest neighbourhoods of Rio de Janeiro, on a surface of less than 2 km2, the Rocinha favela is considered the largest single slum in Brazil, with an unofficial population between 150,000 and 200,000 inhabitants. Its privileged position, dimension and characteristics, compared to the other circa 1000 favelas of Rio, make Rocinha a paradigmatic case of the socio-economic and environmental contradictions of the Brazilian mega-city, but a significant case study for any slum-upgrading programme. The Brazilian experience with slums upgrading is globally recognized, but it is still fragmented and needs to be improved. An overview of the main slum-upgrading policies and programmes carried out in Rio shows that the lack of appropriate participatory programmes and systemic approaches can hinder successful solutions