Credit? They've got your numbers
Updated: 2015-01-07 07:34
By JIANG XUEQING(China Daily)
|
|||||||||||
A People's Bank of China branch issues credit information certificates to applicants in Fuzhou, Fujian province. Eight non-bank institutions will be permitted to conduct personal credit information operations. [Photo/China Daily] |
A broad-based, market-oriented personal credit database is being developed in China with the participation of institutions outside the traditional banking sector, the central bank said on Monday.
The People's Bank of China said in a statement that it has told eight non-bank institutions that they should be ready to conduct personal credit information operations within six months. The companies include subsidiaries of Internet giants Alibaba Group Holding Ltd and Tencent Holdings Ltd.
Financial researchers said the effort will promote the development of credit information and lay a stronger foundation for personal financial transactions.
Yang Tao, a researcher at the Institute of Finance and Banking at the Chinese Academy of Social Sciences, said: "The credit information system established by the central bank does not cover all the daily behavior that could reflect personal credit. Today, an increasing number of transactions and payments are done through e-commerce platforms and various terminals of third-party payment companies. They all leave traces of information to support credit evaluation by commercial banks."
According to the PBOC, there were 436 million credit cards in use in China as of Sept 30, compared with the country's total population of 1.36 billion.
As many people do not have such cards, commercial banks can only provide limited information on their credit, which makes it hard for these consumers to get loans, Yang said.
"The expansion of credit information collection will play a big role in improving personal credit scores, making it easier for consumers to receive loans and boosting the growth of consumer finance," he said.
"It will also help alleviate the financing difficulties faced by small businesses and reduce their financing costs."
Wu Qing, deputy director of banking research at the Development Research Center of the State Council, said that Internet companies such as Alibaba and Tencent are capable of rating personal credit based on big data analysis. That will compensate for the weakness of commercial banks.
"Although banks are also using big data and have their own credit information systems, they do not make the best use of it, nor are they strongly motivated to dig into the big data. But they will be prompted to do so by the newcomers who will join the market soon," Wu said.
He advised the government to do more to protect the privacy and security of personal information.
Related Stories
Beijing increases housing credit ceiling 2015-01-02 09:14
Survey of the state of business of rural credit cooperatives (No 60, 2003) 2014-12-03 16:49
Credit cooperatives' irreplaceable role in the rural financial system (No 152, 2006) 2014-12-17 14:19
Chinese micro-credit firms lend 88.6b yuan in Q1-Q3 2014-10-25 17:18
Today's Top News
Export quota system for rare earths abolished
Euro slumps amid concern over Greek exit after election
New York City community rallies around Liu family
Stock link bid for HK, Shenzhen
The 2015 Palace Museum datebook goes viral
China braces for slower but better growth in 2015
8 missing after cargo ship capsizes off Scotland
PLA announces a major reshuffling
Hot Topics
Lunar probe , China growth forecasts, Emission rules get tougher, China seen through 'colored lens', International board,
Editor's Picks
Yearender: What happened around the globe in 2014 |
National Memorial Day for Nanjing Massacre victims |
Corrupt female officials spark debate |
Blue skies ready to greet APEC |
Growth pangs |
Sea change |