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.

 

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 September 30, compared with the country's total population of 1.36 billion. 

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