Lenders have given mixed responses to the Financial System Inquiry's suggestion that the comprehensive credit reporting regime could be expanded.In its interim report, the FSI asked for feedback on whether use of CCR should be mandatory, whether it should be extended to small and medium business credit, and whether more data should be added to credit reports.The FSI said: "Increasing the number of fields reported, such as outstanding credit balances, could further address information asymmetries in the credit assessment process. These benefits would need to be balanced against privacy concerns."None of the Big Four banks supported the idea of making participation in CCR mandatory. Westpac's second round submission said: "Westpac believes that natural competitive forces, rather than mandating, should shape CCR. Mandating would impose significant technological and operational transition costs on all providers, regardless of the extent to which they rely on the additional CCR data."Commonwealth Bank adopted a similar position and said CCR  "should not be made mandatory."Lenders should be permitted to transition in line with their ability to upgrade systems and processes over time. Voluntary reciprocity is the most appropriate approach," CBA said.On the question of extending CCR to SMEs, the FSI said: "This may have the potential to improve SME credit risk assessments and improve SME access to funding."ANZ supported the idea. Its second round submission said: " Comprehensive credit reporting is a major improvement to the availability of information and will provide significant benefits to financial institutions, consumers and small businesses over time. ANZ is implementing CCR systems and would expect the market will inevitably move towards the inclusion of SME lending in CCR."National Australia Bank was sceptical. It said: "In principle, NAB supports the committee's intent to reduce information gaps through mechanisms such as the extension of comprehensive credit reporting. However, it is important to understand impediments and impact with respect to administrative, cost, privacy and regulatory issues."The implementation of an SME finance database alone will not solve all information asymmetry issues, particularly for newly formed businesses, which have insufficient trading information for banks to assess a loan application. The committee should not expect that a reduction in lending rates would automatically follow the introduction of a CCR database for SMEs."Commonwealth Bank was the least enthusiastic about the value of CCR. It said: "A number of issues need to be resolved. The Office of the Privacy Commissioner has noted that expanding the volume and depth of information that would be available on individuals' credit files may worsen the current problems with accuracy of credit information."Data security incidents overseas have seen the security of comprehensive credit reporting information compromised by credit reporting agencies."It is premature to recommend changes. A further area of concern is the cost of implementation. It is a costly and complex undertaking."