In order to tighten regulations on personal borrowings from alternative lending platforms, the People’s Bank of China, China’s central bank, has made plans to launch a platform by the end of 2017 for collecting personal credit information to assess credit ratings of people using alternative lending platforms.
Over the past year, the intense expansion of consumer loans (mostly from online micro-loan platforms) has raised concerns among financial regulators. PBOC has operated a credit reference center for some time, however it is only collecting, updating, sharing of credit information from traditional financial institutions.
The new platform is expected to cover data from non-traditional market participants, especially the Fintech industry (e.g. peer to peer lending), which will complement the existing credit data mechanism, increase supervision over non-traditional financial sectors and effectively reduce systemic risk.
Third-party credit service agencies may also become shareholders in the new platform with a ratio of 8% respectively. The eight agencies (namely Zhima Credit, Tencent Credit, Qianhai Zheng Xin, Pengyuan Credit, China Chengxin Credit, Intelli Credit, Kaola Zheng Xin and Sinoway Credit) were said to be granted license of credit information service by the start of 2015. Yet, the process was suspended for unknown reasons.
Source: Crowdfound Insider