Bank credit system covers default records

BEIJING - The Supreme People's Court (SPC) on Thursday signed a memo with the People's Bank of China (PBOC) officially exposing defaulters within the bank credit system.

According to an SPC statement, the PBOC credit reference center will include default records in credit reports on groups and individuals shared with financial institutions, influencing loan decisions.

Government departments, industrial associations and civil service units will have access to these reports as references for defaulters' financial and employment requests, restricting defaulters' activity in government procurements, tenders, administrative approvals and loans, until they comply with court orders.

Last month, the SPC started public checks of more than 30,000 defaulters on its website, following an October 1 regulation that those capable of fulfilling court judgments but who fail to do so should be punished.