China: Consumer Credit Database Established
People's Daily Online reports from China that Chinese banks have completed a database that links up information on consumer credit - "a major move to better manage risks and cultivate a credit culture."
The People's Bank of China (PBOC), the nation's central bank, said yesterday that a personal credit information system that connects all local commercial banks and some rural credit co-operatives (RCCs) was formally established earlier this month."People with good credit records will now find it easier to get loans and get more favourable loan terms. It will provide a basis for banks to calculate risk," said Su Ning, deputy governor of the PBOC.
The system includes credit records for 340 million Chinese residents, and covers 97.5 per cent of all consumer loans granted by Chinese banks, worth 2.2 trillion yuan (US$271 billion). It is capable of generating personal credit reports that will provide information on a person's borrowing from different banks, including credit card transactions.
A broad range of information will eventually be included in the new system to include such things as tax payments, legal disputes and social security payments. It is currently free to use, but the central bank said an appropriate fee might be imposed in the future to cover expenses, although the system is not intended to make a profit.
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