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)
