People’s Bank of China Turns to Industrial and Commercial Authorities for Credit Information
The People’s Bank of China is trialling the use of information provided by the government’s industrial and commercial authorities to improve lending decisions in Hubei province.
The Wuhan branch of the People’s Bank of China has executed a co-operative agreement with the Wuhan Department of Industry and Commerce to share twelve categories of information concerning enterprises.
The move is part of local efforts to implement “industrial and commercial credit information financing+” model, which involves the conversion of “credit” enjoyed by enterprises with industrial and commercial authorities into financial credit for obtaining funds.
Under the agreement the Wuhan Department of Industry and Commerce will make information that it obtains about market entities during the performance of its official duties available to the Wuhan branch of PBOC, in order to provide a surer basis for financing decisions and make it easier for sound companies to obtain bank loans.
The twelve categories of information will encompass equity owners, equity freezing and spot checks.
A member of the Wuhan branch of PBOC said that the agreement was part of efforts by the bank to amass as much economic, financial and social credit data as it could obtain to make it easier for micro-enterprises and tech companies to obtain financing.