Solvency and creditworthiness are important not only for countries, governments, companies and institutions. But it is also required for individuals to shape consumer behaviour according to their solvency and credit value so that they can sustain their financial condition.
With this vision, the Oman Credit and Financial Information Centre (Mala’a) has decided to provide practical solutions to measure solvency and creditworthiness in the Sultanate of Oman. Various institutions, companies and individuals can equally benefit from this service of accurate assessment of their creditworthiness.
For this purpose the centre has put in place correct mechanisms and standards. This helps in improvement of credit levels, strengthening of the financial environment and ensures ease of doing business in the country according to clear accounting and scientific indicators. It is gratifying that this will reduce credit risks and related problems for individuals and the society in the country.
The services being provided by Mala’a is of huge importance for the country and its people. It helps in strengthening financial standing of every individual and institution. The time is not far when its importance will be appreciated by all in the country.
Mala’a was established by Royal Decree No 38/2019 issued on May 8, 2019, to play a vital role in providing accurate financial and credit data to the authorities concerned. Since then, huge interest has been shown in the service. The number of applications for credit reports reached 740 during 2020. It shows that there is a realisation that the centre is playing a crucial role in reducing risks and improving the quality of loans to donors, companies and individuals in a manner which helps in achievement of balance between financial capabilities and the obligations. This is required to make sound decisions for providing loans and prevent any threat of default.
If anybody commits default in repayment of loans and financial obligations, it has negative implications for everybody without any exception. Therefore, it is important for such institutions to guard their credit compass strictly.
Mala’a has signed more than 30 membership agreements with entities working in the area of finance or credit related activities in various sectors. With this, these entities can benefit from the centre’s services for their required data on the creditworthiness of institutions and individuals. This step is of great importance to maintain their financial and credit standing by employing accurate data, in a way which is in the public interest. It can enhance the financial and credit efficiency of the country in a sustainable manner.
We should not overlook the importance of these services to individuals which protect them from irrational consumer practices and irresponsible financial behaviour. These services increase their credit level and make their lifestyle safe from any such risks. The centre indirectly guides individual behaviours smoothly to the right direction. This is aimed at maintaining the individual’s solvency and making balance between their capabilities and obligations by its credit reports.
The efforts made by the Oman Credit and Financial Information Centre, also known as Mala’a, are very important to make credit conditions stronger and achieve sustainability in business. This is because their financial value is the basis for their business and for getting guarantees. It is important for growth, development and sustainability.
There is no doubt that there are challenges everywhere in large businesses. This is why it is important to create credit culture in the country. With the passage of time, everybody would realise its importance for individuals as well as institutions.
We are confident that Mala’a will achieve its objective of strengthening and consolidating the credit culture. It will take it to levels which will help in achieving the public interest in business sustainability. These are the services of the centre which will ward off risks for individuals and institutions and protect them from negative implications. This is required for everybody’s financial and monetary security and stability.