The escalating number of bankruptcies and credit write-offs by banks will not improve unless they fight for quick access to positive credit information, according to Hong Kong Association of Banks (HKAB) chairman Liu Jinbao.
The association asked for a one-year transition period for the setting up of a positive credit information bureau, he said.
But the Privacy Commissioner's consultation paper on Wednesday recommended a two-year period before the proposed databank of positive credit information became effective.
The proposed credit bureau aims to pool all personal loan data in Hong Kong to allow bankers to assess positive credit information and monitor debt levels.
The HKAB proposed the one-year transition period after a study and consultation among its members, he said.
'Bankruptcies and defaults on credit cards will not improve unless we can access positive credit data for new loan applications,' Mr Liu said.