This was the message aired by Bangko Sentral ng Pilipinas (BSP) governor Amado Tetangco Jr. during a recent speech celebrating the 13th anniversary of the country’s connection to the Internet and the holding of the 5th E-Commerce Congress organized by the Philippine Internet Commerce Society (PICS) at the Dusit Hotel in Makati City.

Fortunately for the country, Tetangco said a bill specifically addressing that concern is now in the bicameral committee of Congress and is expected to be signed by Pres. Arroyo.

The measure, titled Credit Information System Act (CISA), has already been separately approved by both the Senate and the House of Representatives and is just awaiting ratification of the bicam report reconciling the difference between the two versions before it is signed into law, he said.

Once approved, the law is expected to provide the framework for a reliable system for collection and dissemination of fair and accurate information that will support and promote credit-based economic activities, the BSP governor added.

As of now, the Philippines is not included in the list of countries accredited by most online payment gateways such as PayPal because of the high rate of fraud and unconsummated transactions.

Under the bill, a Credit Information Corporation will be established to consolidate credit-related data that banks, their affiliates, and subsidiaries are legally mandated to submit.

The new legal entity, which will be owned privately with BSP ownership of up to 40 percent, will provide the data to accredited private credit bureaus who will then generate analytical reports and other value-added products such as credit ratings and credit scoring to clients.

Simply put, there will now be data sharing among banks and lending institutions on the credit history of clients. A bank, for example, would know if a person applying for credit card has an unpaid credit account in another bank.

Another benefit of a credit information system, he said, is that it can provide opportunities for small firms to enter into business transactions with larger companies, even those abroad.

"In no small measure, the information exchange levels the playing field among the commercial players. This may result in the widening of the potential market as well as further expands the opportunities for growth of e-business," he said.

Tetangco also said the BSP has issued circulars relevant to e-banking and has institutionalized a Core Information Technology Supervision Group in order for the agency "to remain responsive to technological innovations while maintaining prudential standards insofar as e-banking is concerned."

As of September, 2006, there are 73 banks in the country who have e-banking operations – 33 are universal and commercial banks, 11 are thrift banks, and 29 are rural and cooperative rural banks.