Creating Financial Infrastructure in a Large Transition Economy – Lessons from China’s New Credit Bureau

Creating Financial Infrastructure in a Large Transition Economy – Lessons from China’s New Credit Bureau

International Financial Corporation (IFC) and the World Bank have in recent years promoted the implementation of credit bureaus as a way of improving access to finance for both individuals and businesses. In 2003, no such structure existed for cons...

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Bibliographic Details
Main Authors: Paramanathan, Prashan, Huang, Lin
Format: Brief
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
ACCESS TO FINANCE
ACCESS TO FINANCING
ADVISORY SERVICES
BANK OFFICIALS
BANKING SYSTEM
BANKS
BEST PRACTICE
BUSINESS INFORMATION
CENTRAL BANK
COMMERCIAL BANKS
CONSUMER
CONSUMER CREDIT
CREDIT BUREAU
CREDIT BUREAUS
CREDIT EXPERIENCE
CREDIT INFORMATION
CREDIT INFORMATION SYSTEM
CREDIT REPORTING
DEVELOPING COUNTRIES
FINANCIAL INFRASTRUCTURE
FINANCIAL SERVICES
FINANCIAL SERVICES INDUSTRY
INFORMATION SERVICES
INFRASTRUCTURE DEVELOPMENT
INFRASTRUCTURE PROJECTS
JOINT-STOCK COMPANY
LARGE BANKS
LENDER
LENDERS
LIQUIDITY
LOCAL INSTITUTIONS
MEDIUM ENTERPRISE
MICROFINANCE
NEW CREDIT
NONPAYMENT
NONPERFORMING LOANS
PORTFOLIO
PRIVATE CREDIT
PRIVATE CREDIT BUREAU
PRIVATE ENTERPRISE
PROSPERITY
REPUTATION
RISK MANAGEMENT
SAVINGS
STAKEHOLDERS
TRANSITION ECONOMY
Online Access:http://documents.worldbank.org/curated/en/2009/04/10618006/creating-financial-infrastructure-large-transition-economy-lessons-chinas-new-credit-bureau
http://hdl.handle.net/10986/10567
Description
Summary:International Financial Corporation (IFC) and the World Bank have in recent years promoted the implementation of credit bureaus as a way of improving access to finance for both individuals and businesses. In 2003, no such structure existed for consumer credit information in China. Not only was access to financing reduced, but the quality of the entire lending industry was also affected nonperforming loans represented a significant proportion of the portfolio, risk management practices were weak, and loans were poorly monitored. However, as this smart lesson describes, creating financial infrastructure such as a consumer credit bureau in large countries presents a unique set of challenges.

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