Factors Affecting on Awareness of Credit Information Bureau of the Borrowers with Special Reference to People’s Bank of Sri Lanka

Abstract

Advanced economies and financial systems are operating efficiently with the help of easily available credible information. The banks provide credit facilities to develop retail and corporate line trading activities and improve the standard of living accordingly. In Sri Lanka, after 1980’s the credit culture have been shaken because of the crisis aroused in the sector. As a result of the unfavorable credit culture regulatory bodies established Credit Information Bureau (CRIB) which provides comprehensive credit reports to promote credit worthy society still borrowers have a huge knowledge gap about CRIB services. The aim of the study is to investigate the factors affecting on the awareness of credit information bureau (CRIB) of borrowers with special reference to People’s Bank. The study was conducted to explore the factors affecting on the CRIB awareness including age, gender, education level, income level and employed type. To achieve the aim, five basic hypotheses are investigated as the independent variables and CRIB awareness. The study was carried out using quantitative research method using structured questionnaires to gather primary data by selecting 80 personal loan customers from people’s bank and that was analyzed by using categorical data analysis by chi square statistics. The findings revealed that independent variables and CRIB awareness are related to each other. And major five variables were highly affected to CRIB awareness, which are education level and employment type. Education level and employed type are affecting to the CRIB awareness. The study provides more information to the customers such that find outs the major reasons for CRIB awareness and helps to get decisions on the issue while providing some relative information. The study suggests that authorities further develop the system to aware more on credit worthiness and create a culture among the nation to give recognition for the people who have better credit discipline