Personal Credit is to be kicked off in China

 

 

Keywords:  credit, personal credit system, enterprise, individuals, investigation, mortgage, database

 

On July 1, Shanghai will for the fist time kick off the experimental work on personal credit in China. As a result, over one million city residents of Shanghai will become the first group of the Chinese, holding personal credit record. This marks the beginning of  China 's personal credit system after a long time of preparation.

 

Personal credit system has 150 years of history in the world. In developed countries with complete and mature financial system, enterprise and banks can check about the credit status of a citizen from intermediary institutions by way of payment inquiry to decide whether or not to engage in any economic relationship with him or her.

 

In China , such a system has for a long time remained unavailable. Due to the lack of information on personal credit situation, banks have a lot of idle fund but fear to grant loans to individuals and the procedure of applying for personal credit is over-elaborated and complicated. Few firms accept personal checks despite the launching of personal check business, the phenomenon of malicious overdraft on credit card being serious. All these problems indicate that establishing a personal credit system is badly needed.

 

Shanghai 's 15 commercial banks have become the members of Shanghai Personal Credit Information Data Center Council (the supervisory organ administrating the work of Shanghai personal credit unified investigation). The first group of city residents holding personal credit record is those who have already had credit relations with these banks and those who have applied for getting overdrawable credit cards. The amounts of these two types of people are 680 thousand and 1.18 million respectively, the total clients exceeding 1.8 million.

 

Every commercial bank collects the credit status records of clients and input them into the database of credit institute including the items and values of personal loans, overdraft information of credit cards, malicious overdrawing record and defraud banking record. From July 1, commercial banks can dial up and get through to credit institute’s database after receiving the personal loan application and can get the credit information of the applicant within 5 seconds so as to base their decision of whether or not to accept the application for it.

 

Shanghai 's banking circle welcomes personal credit unified investigation. China Industry and Commerce Bank Shanghai Branch stated that they are designing a pure personal credit loan variety, which does not require any mortgage.

 

Source: http://english.peopledaily.com.cn/200006/26/eng20000626_43974.html   

 

 

 

For more:

China weighs credit database options (Ⅰ) -- Analyzing credit reporting system models

China weighs credit database options (Ⅱ) -- Analyzing credit reporting system models

Growing of China Credit Database  

Credit Report

Introduction on the Business Databases Search in Hong Kong , Macao and Taiwan

Risk Investment and Risk Management in Business Industry

2009 Chinese Tax Regulations for Non-Resident Enterprises

Construction of Credit System Sees No Basis in Law and Government’s Regulation

The ABCs of Due Diligence

The What and How of Background Checking

How to Do a Credit Background Check

Insolvency and Corporate Bankruptcy in China

Building a Credit Infrastructure in China

How Your Credit Report and Credit Score are Used

Credit Guarantee Legal System in China

Check Your Mortgage Credit Score - Get the House You Want  

Employment Background Checks

Find out Who Phone Number Belongs to

Reverse Cell Lookup

Top 5 Most Valuable Professional Qualification Certificates in China at Present

Top 10 Certified Public Accountants in China

Pre Employment Screening

Pre-Employment Check - A Must for All Businesses

Getting Married in China (I)

Getting Married in China (II)

Civil Records in China (I)

Civil Records in China (II)

Regional Security of China Tourism

 

 

 

 

SBCS Investigation Services cover Peking, Tientsin, Hopei, Shanxi, Liaoning, Kirin, Heilongjiang, Shanghai, Kiangsu, Zhejiang, Anhwei, Fukien, Kiangsi, Shantung, Honan, Hupei, Hunan, Kwangtung, Kwangsi, Hainan, Chongqing, Szechuan, Kweichow, Yunnan, Tibet, Shenxi, Kansu, Tsinghai, Ningsia, Sinkiang, Taiwan, Hong Kong, Macau and so on.