Loans system revamp boosted amid lack of trust

PUBLISHED : Tuesday, 31 July, 2012, 12:00am
UPDATED : Tuesday, 31 July, 2012, 12:00am


The central government's plan to expand a planned revamp of the national financial loans system is a reflection of authorities seeking to combat rising moral degradation.

Analysts say the move also suggests that the government recognises that the public is becoming increasingly distrustful amid widespread corruption, negligence of duty and other malpractice among officials.

In a document released last week, the State Council, which serves as the nation's cabinet, said that a planned revamp of the credit system would cover not only the commercial sector, but also governmental, cultural, educational, public health, social and judicial affairs.

Meanwhile, an inter-ministerial body responsible for the credit system - currently headed by the central bank and the nation's top planning agency - would be expanded to include members of 33 other party organs, central ministries and agencies. This includes the anti-graft agencies, the party's propaganda departments, judicial bodies and the government's cultural and education ministries.

Professor Ma Guoxian, director of the Public Policy Centre at the Shanghai University of Finances and Economics, said: 'The development reflects the fact that there is fast-decaying social morality and an overwhelming worry by top leadership about the public's increasing distrust of the government.'

However, he said, it was also an effort to promote transparency and accountability in governance and other areas.

Last year, a credit crisis sank many companies and sent high-profile entrepreneurs into hiding in Wenzhou , Zhejiang province. This strengthened belief among the public that a more comprehensive credit system was needed.

About five years ago, the central government announced that a comprehensive credit registration system would be established by 2015 to help promote trust among the public in businesses, particularly banking and financial businesses. However, little progress has been reported since a State Council document in 2007.