What is a Credit Bureau?

The Credit Bureau is a functional department of the local government, responsible for undertaking the management of credit information, drawing up the development planning, management methods and related risk evaluation guidelines for the credit information industry, and undertaking the promotion of financial knowledge.

Credit Bureau

Right!

The Credit Bureau is a functional department of the local government, responsible for undertaking the management of credit information, drawing up the development planning, management methods and related risk evaluation guidelines for the credit information industry, and undertaking the promotion and popularization of financial knowledge.

The Third Plenary Session of the Sixteenth Central Committee of the Communist Party of China clearly proposed that China's credit information market should follow the development path of "perfect regulations, franchising, commercial operations, and professional services." According to the 2003 Notice on the Opinions on the Adjustment of the Internal Responsibilities of the People's Bank of China and the Establishment of Staffing by the People s Bank of China of the Office of the Central Organization Establishment Committee, The management of the credit industry and the promotion of the establishment of a social credit system are the main responsibilities assigned by the State Council one. In November 2003, the People's Bank of China accordingly established a credit bureau in the head office, and subsequently set up a credit management department in the branch, which is responsible for the management of credit information, drawing up the development plan, management measures and Relevant risk evaluation criteria, to undertake the work of publicizing and popularizing financial knowledge.

The reason why the People's Bank of China manages the credit rating industry is to prevent unreasonable competition that may exist among credit rating agencies, resulting in unreal credit rating results, causing losses to investors and further financial risks; Trade secrets are abused because credit rating agencies hold the trade secrets of debt-issuing companies during the rating process; the third is to prevent damage to the country's information security and economic interests.