Shanghai Improves Credit EnvironmentShanghai, China's largest industrial and commercial city, has stepped up efforts to create a more favorable environment for credit consumption.The city established a corporate credit registration and consulting system in 1999, which contains such information as brief introductions of debtors and their financial and credit records. In July this year, an individual credit information network was opened to keep credit records of individuals. So far more than 1 million local residents have been covered by the network. A local banker said the establishment of the two information systems has provided a guarantee for commercial banks to increase credit consumption. Credit consumption was not available in China until 1998, when the Industrial and Commercial Bank of China began to offer consumer loans to buy homes, for home repair, to purchase automobiles and travel. Economists believe that consumer credit or loans can go far in stimulating domestic demand, guaranteeing the steady growth of the economy, and giving Chinese people a more convenient way to buy goods and services. Commercial banks also expect the emergence of the consumer credit business to raise their asset quality and liquidity. However, Chinese people's traditional buying habits and the country's backward credit system continues to hinder the development of consumer credit. |
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