Personal credit record systems in seven Chinese cities will be
connected soon to pave the way for the launch of a nationwide
system planned for 2005.
The People's Bank of China (PBC) said on Wednesday in
a press release that all commercial banks operating in the seven
cities will be linked to the database from mid-December. It did not
provide the specific date.
The seven cities, scattered across the country, include Beijing,
Chongqing,
Shenzhen, Xi'an and three medium-sized cities in south China.
A nationwide system is badly needed to meet the needs of the
booming consumer credit business. An increasing number of Chinese
citizens are taking out loans to buy homes, cars and other
durables.
As the business grows, so do risks. There have been reports of
consumers borrowing to buy more than one home and then defaulting
on the loans.
In 2002, the central bank launched a national credit record
system for corporate borrowers and most government and private
sector activities in the realm of risk reduction have been in the
corporate sector.
Some cities have established personal credit record systems, but
they are isolated from each other and do not work efficiently.
(China Daily December 16, 2004)