The Right to Privacy of Customers of Financial Institutions vis-à-vis Credit Reference System: The Ethiopian Laws under Scrutiny

Abstract

This study examined effects of credit reference system on the right to privacy of customers of financial institutions. The credit reference system being a medium for the exchange of personal information of customers of financial institutions taking part therein; aims at facilitating credit market efficiency and stability. The right to privacy on other hand tries to keep to the minimum the intrusion to private domain of persons, customers of financial institutions being one of them. This article critically examined how these two seemingly conflicting interests have been compromised under the Ethiopian laws. A doctrinal research approach was employed in the analysis of the Ethiopian laws on the right to privacy and laws governing the credit reference system. The review of literature and analysis of legal instruments of both national and international character have been used to substantiate the arguments set forth in this work.This work concluded that even though violation of the right to privacy of the customers of financial institutions can be justified on the ground of voluntary relinquishment such rights; the Ethiopian credit reference system still needs reconsideration in light of principles recognized internationally for the protection of the right to privacy of persons. This work recommends for the revision of the Ethiopian credit reference system for better protection of the right to privacy of customers of financial institutions.

Keywords: rights, privacy, credit reference system, financial institutions, Ethiopia

DOI: 10.7176/CEIS/15-1-03

Publication date: January 31^st 2024