Nevertheless, now that the institutional framework for the credit reference service has been established, the costs of providing credit reference services will fall and hence there will be much less of a need for ongoing subsidy. In the three and a half years since Compuscan commenced Credit Reference Bureau operations in Uganda, in May 2008, great progress has been achieved.
According to the Federal Reserve’s flow of funds accounts, household net worth peaked in the second quarter of 2007 and then fell approximately 28 percent during the next two years (figure 1). The initial shocks to housing and to financial assets wiped out most of the wealth gains realized since the aftermath of the tech crash in 2001.