The problem of license is the biggest pain point in the credit investigation market of Chinese enterprises. Credit market chaos, the “right road” is not smooth is one of the important reasons, and this license shortage is a major factor.
Licences are the grip of regulation and should not be hyped as profit-making privileges. For licensees, a license is a reason to check the business practices of regulated institutions; For licensees, this is the responsibility of compliance operations.
The business content of the open credit information market is complicated, and the regulators who issue a single industry license will face a difficult choice. The credit investigation license may be issued according to the business that needs to be regulated, and the access conditions are formulated according to the licensing business. Not all credit bureaus will grow into large institutions like the central bank’s credit bureaus that collect and report information on credit transactions, and there is no need to determine the amount of capital to issue licenses or the seniority of senior executives according to the standards used to measure the next central bank’s credit bureaus. For example, some western developed countries have issued different licenses for the collection and reporting of credit information and credit information services, setting different standards for the two. Some businesses in the credit reporting industry do not even need to be managed in a franchise way. Regulators should judge where to clamp down based on the objectives and risks involved.
“The number of credit agencies in a market should not be too much” is a false proposition. There really shouldn’t be too many large institutions collecting and reporting information on credit transactions on a national scale, though not because there’s anything wrong with doing so, just because they want to save society’s resources. The number of credit reporting licenses is not the same as the number of “large institutions that collect and report information on credit transactions on a national scale.” “Dislocation management” is also a false proposition. Any “market-oriented” institution is unlikely to “operate on the same footing” and form a competitive relationship with the central bank’s credit information center, because the credit information center is a non-profit, legally authorized special institution whose main mission is to collect and store the country’s credit base information. There is unlikely to be a second such institution. In addition, many credit reporting businesses need more competition and do not have the same degree of potential risk, and more licenses must have more advantages than disadvantages.
Post time: Nov-17-2023