Establishing the Individual Credit Registry System in China

This case examines (i) why governments must play a leadership role to ensure the creation of a credit information system (CIS) that is designed to encourage banks and other domestic financial institutions to increase their lending to local consumers; (ii) alternative strategies/models for implementing a new CIS that have been used by different countries; and  (iii) the complex issues encountered by the government officials who are responsible for assessing the strengths and weaknesses of the alternative approaches to creating a new credit information system. The case focuses particular attention on the critical role of officials in the central bank of China’s (PBOC) who were in charge, and their interactions with their technical advisors from the International Finance Corporation (World Bank affiliate) who were recommending a CIS model that differed from what the Central Bank believed was appropriate for conditions in China. 

Case studies are integral teaching tools for the Leadership Academy for Development workshops conducted around the world.