(Shanghai Daily)
Updated: 2008-06-03 11:25

BEIJING  -- China is studying plans to add more financial information to a nationwide credit database so that individuals will have an "economic identity," the central bank said Monday.

Authorities are working on including brokers and insurers' clients data into the nationwide individual credit database, the Shanghai headquarters of the People's Bank of China, the central bank, said Monday.

The nationwide database includes records such as payments of bank loans, telecommunications bills, public housing fund and pension fund. Individuals with a bad record may find it difficult to get loans.

"The system is the outcome of economic development as more credit products are needed, and therefore the set-up of a third-party platform for credit information is needed," the official said. "It's not a black list but a fair record" of an individual's credit history.

The central bank is looking to an individual's credit record and lending history as the main factor among all other data. So the delay in paying utility bills or telecom bills will not have a big impact on an individual's credit evaluation if he should apply for a bank loan or credit card.

The State Council and the National Development and Reform Commission are studying plans to improve the legal mechanism on the management of credit database which is very common in western markets and some Asian nations with a more developed banking system.

The credit system, managed by the central bank, was set up in January 2006 and is open to individuals and companies. With their identity card, individuals can get a free report of their credit record for free at branches of the central bank.

The database covers 600 million individuals across the country and more than 100 million of them have bank loan records at the end of 2007, according to officials.