A national credit rating system for individuals and businesses will be established in China, according to the People’s Bank of China governor Dai Xianglong reported by China Daily. A pilot system introduced in China last year will be rolled out across the country. Businesses with a poor financial record will appear on an official website, said the newspaper, and this will harm their prospects of receiving loans and create ‘obstacles’ in their dealings with government departments.
Previously, banks and other financial institutions were unable to fully assess the financial history of their potential customers because of the absence of a nationwide network.