Boon expected for economy by unleashing private spending through use of cards and consumer loans
The People's Bank of China (PBOC) will soon launch trials of the first national consumer credit history database, according to bank officials.
The central bank started a credit database for enterprises in 2002, but this is the first attempt to build a unified data source on mortgages and other consumer loans.
'They have been talking about a credit information system for some time,' Standard Chartered economist Tai Hui said. 'Someone's got to take the lead.'
The database could mark a significant step in the development of a consumer credit. The PBOC is collecting data from banks across the mainland and will begin trials on the system in several provinces by the end of the year.
Banks and credit agencies now have no central system for assessing individual credit history, making it difficult to ascribe risk and price loans.