as a major challenge that hinders their growth and development. interestingly, this is not unique to malaysian smes, but rather a worldwide phenomenon. according to the asian banker's 2005 report, it was estimated that only about 5 % 3 of the world's 500 million lowincome entrepreneurs have access to financial services. the main reasons for the financial constraints faced by smes are quite generic, and high on the list is the perception that smes are historically a high risk group lacking in financial discipline and unable to provide trustworthy financial track records. to overcome this perception, there should be adequate and reliable credit information mechanism, such as an sme credit bureau, that serves the needs of both the smes'and the potential lenders '. the establishment of a proposed sme credit bureau under this strategic alliance between cgc and d & b would complement other initiatives of the government and the financial sector to further enhance smes'access to financing. one of the most important roles of the bureau is to make available sme information, which includes their operational and financial status to potential lenders. in addition to relevant and timely information, potential lenders could also take comfort that the information is independently provided, hence increasing its reliability. the importance of a credit bureau in the current environment cannot be over - emphasized. a world bank report stated that a good credit information infrastructure can contribute significantly towards assisting smes'access to capital. the report further highlighted that small firms with access to credit bureaus have a 40 % chance of obtaining a loan, whereas firms without access to credit bureaus have only a 28 % chance of receiving a loan. therefore, significant opportunities exist to increase lending activities to smes in malaysia with the establishment of an sme credit bureau. currently, information available for lenders to assess the creditworthiness of malaysian smes is quite fragmented. although there are a number of parties providing information on smes, the information are mostly tailored towards specific requirements and does not add the necessary values required from the perspective of potential lenders. to bridge this information gap, the sme credit bureau would effectively consolidate the fragmented information. this convergence of data from various sources would be enhanced, resulting in a convenient, timely and efficient access to sme information and credit ratings to assist the potential lenders to make a more objective evaluation of loan applications. it is our ardent hope that the sme credit bureau will become an integral component towards enabling smes to gain access to financing.

that substantially revise the process by which banks return unpaid checks, which has expedited the receipt of those checks by depositary banks and ensured prompt notice of large - dollar returned checks. in addition, the board has adopted rules that enhance the legal abilities of private - sector banks to obtain same - day final settlement for checks presented by a specified time, which has spurred competition in the provision of check clearing services, improved efficiency, and sped the collection of many checks. section 611 ( f ) of the efaa states " the board is authorized to impose on or allocate among depository institutions the risks of loss and liability in connection with any aspect of the payment system, including the receipt, payment, collection, or clearing of checks, and any related function of the payment system with respect to checks. liability under this subsection shall not exceed the amount of the check giving rise to the loss or liability, and, where there is bad faith, other damages, if any, suffered as a proximate consequence of any act or omission giving rise to the loss or liability. " [ 12 u. s. c. § 4010 ( f ) ]