To implement the decisions and arrangements of the Central Committee of the Communist Party of China (CPC) and the State Council on regulating the credit reporting industry, advance the rule of law in the industry, practice the philosophy of facilitating credit reporting services for the benefit of the people, and strengthen the protection of personal information, the People’s Bank of China (PBC) released the Measures for the Administration of Credit Reporting Services (hereinafter referred to as the Measures), which will come into effect from January 1, 2022. As a supporting policy to the Regulation on the Administration of Credit Reporting Industry, it, together with the Measures for the Administration of Credit Reporting Agencies, constitutes a vital component of the legal system for the credit reporting industry. These regulations are conducive to reinforcing the law-based regulation of the credit reporting industry, protecting the legitimate rights and interests of information subjects, as well as their information safety and security, while driving the market-oriented, law-based and technology-driven development of the credit reporting industry.
Since the implementation of the Regulation on the Administration of Credit Reporting Industry, the PBC has worked to continuously improve the service functions of the National Financial Credit Information Basic Database which has harvested breakthroughs and played its significant role in the credit reference system in forestalling financial risks. In addition, the PBC has approved the set-up of two market-based consumer credit reporting agencies and recorded the registration of 134 commercial credit reporting agencies and 59 credit rating agencies, fostering a development paradigm in which the Credit Reference Center under the PBC and market-based credit reporting agencies complement each other. Such a paradigm has played a vital role in increasing the effective supply of credit reporting services, facilitating the financing of micro, small and medium-sized enterprises (MSMEs) and supporting the development of the real economy.
Based on recent practices in the credit reporting industry and the principle of placing equal emphasis on regulation and development as well as balancing the supervision over agencies and their services, the Measures defines the scope of credit information, specifies the compliance requirements for credit reporting services, and stipulates the legal responsibilities of credit reporting agencies, information providers and information users, thereby setting out specific and practical guidelines for the compliant operation of credit reporting services.
In strict accordance with national laws and regulations, the Measures further specifies rules for the whole process of credit reporting services. In terms of protecting the legitimate rights and interests of information subjects, it stipulates the methods and principles of credit information collection, clarifies that objectivity and accuracy should be observed during credit information processing, and that the rights of information subjects to be informed, consent, dispute and complain should be protected. With regard to ensuring the legitimate use of credit information, it emphasizes the fairness and legitimacy in using credit information. Specifically, credit reporting agencies should provide credit report, profiling, scoring, rating, anti-fraud and other credit reference products and services in compliance with laws and regulations, and render such services to financial and other activities that support the real economy. In respect of safeguarding the safety and security of credit information, it strengthens and improves regulatory requirements on developing internal control policies for credit reporting, on safety and security management of credit reporting systems, and on personnel management in credit reporting agencies.
Following the Regulation on the Administration of Credit Reporting Industry, the Measures for the Administration of Credit Reporting Agencies and the Measures, the PBC will earnestly fulfill its regulatory obligations on the credit reporting industry, urge credit reporting agencies, financial institutions and other market entities to carry out credit reporting services in compliance with laws and regulations, and promote the well-regulated and sound development of China’s credit reporting industry, so as to render credit reference support to the development of the modern financial system featuring strong adaptability, competitiveness and inclusiveness, as well as the forestalling and defusing of financial risks.
