Chinese banks have completed a database that links up the information on consumer credit, also providing auto loans and mortgages which is a major move to better manage risks and cultivate a credit culture. The lack of such a complete credit information system has up to now limited the ability of Chinese banks that want to increase consumer lending, particularly for cars and houses. The high default ratio on auto loans, partly as a result of bank’s inability to check a borrower's credit history, has already made them very cautious in this promising business area.
April 8, 2006
Auto loans - Consumer credit database established
