Part of the burden was occasioned by “serial defaulters” and inadequate incentives to have a good credit history. The days of “serial defaulters” are definitely numbered with the advent of credit information sharing. More importantly, we expect that there will be incentives for good credit behaviour that will attract competitive pricing of credit facilities.
One necessary complementary measure is the regulation of legitimate entities within the market that is currently called the gray market, and removing illegitimate entities from this market. Such entities should be put under a regulatory framework with all that that entails – in other words, a regulatory, a system of laws and directives, supervisory and enforcement authorities, and so forth.