The tenth anniversary of the implementation of the Regulations on the Management of the Credit Investigation Industry in China. As the first administrative regulation in the field of credit investigation in China, the Regulations are of great significance in promoting the construction of the rule of law in the credit investigation industry, promoting the business operations and market services of various business credit investigation institutions to be more standardized, and objectively promoting the healthy development of some branches of the credit investigation industry. It also allows the government to have a legal basis for the supervision of the credit investigation industry, which is a memorable event for the credit investigation industry. Business credit reports by credit bureaus are also more compliant and legal.
The legislative work of China’s first administrative regulation on credit investigation began in 2002, and the original name of the regulation was “Regulation on Credit Investigation Management”. The People’s Bank of China has been entrusted by The State Council with the function of supervising the credit investigation industry, and the People’s Bank of China has established a set of regulatory rules based on regulations and departmental rules, which has had a profound impact on the development of the credit investigation industry in China. The role played by the Regulations is huge, not only for the development and supervision of the credit investigation industry, but also for the operation rules of the social credit system and the formation of China’s current social rules have made contributions, and achieved great significance, mainly in the following points:
(1) In 2002, it declared the scale of China’s credit investigation industry in a high standard, laying the foundation for the credit investigation industry to be included in the classification of national economic industries.
(2) Defined the characteristics of credit information, credit investigation (to make the information of both sides of the transaction symmetrical) and credit investigation business, standardized the whole operation process of personal credit investigation business and some enterprise credit investigation business operations, set the minimum threshold for various types of credit investigation business operations, improved the legal level of credit investigation industry, and indirectly promoted the improvement of the quality of credit investigation products and services.
(3) The interference of other government departments on the credit investigation industry is excluded, which provides certainty for the development of the credit investigation industry, especially ethical standards and security measures for the operation of personal credit investigation business.
(4) It provides a strong guarantee for the healthy development of the financial industry, especially guarantees the safe delivery of financial credit instruments, greatly enhances the awareness of credit risk prevention of financial institutions, provides convenient and effective credit control tools, indirectly promotes the fairness of the financial market, and maintains the financial stability and security of the country.
(5) It has improved the popularity rate of people’s use of financial instruments such as credit and credit cards throughout the country, popularized financial instruments and financial credit control knowledge to the people throughout the country, and surpassed the average level of people in developed countries in the quality of using financial services. People throughout the country have widely known that personal credit records are “economic identity cards” and “proof of access to financial services”, which has made important contributions to the reshaping of business ethics in the era of China’s credit economy.
(6) Increased the operability of China’s Civil Code, Cybersecurity Law, Data Security Law, Personal Information Protection Law and other laws and regulations in the implementation, and provided references in terms of relevant experience and cases.
(7) It has taken an important step to create a good international image for China’s credit investigation industry, especially with a high moral standard in terms of credit information protection rules.
(8) It has supported the good operation of China’s public credit information system, enabled the national financial credit information basic database system operated by the Credit Information Center of the People’s Bank of China to achieve healthy growth in both quality and quantity, and won an international reputation.
As for the effectiveness of the implementation of the Regulations, there are data showing that as of February 2023, there are 2 personal credit agencies on record in the People’s Bank of China, and 149 corporate credit agencies on record.
In terms of international influence, the public credit information system operated by the People’s Bank of China has been praised by relevant international organizations such as the World Bank, as well as by some national public credit information system operators.
Post time: Nov-27-2023