China has made important progress in establishing a nationwide banking credit registration and consulting system, the People's Bank of China said yesterday.

The central bank began to prepare for the establishment of the system in 1997. The system had connected all major cities above prefecture level by the end of last year, the bank said.

Companies, institutions and other borrowers except individuals, which conduct credit business with financial institutions, are all required to register their basic credit information in the system, such as their financial situation and whether they have been sued, it said.

Domestic and foreign-funded financial institutions' renminbi and foreign exchange business - including loans and credit certificate - are also required to register with the system. By the end of May this year, about 4 million borrowers, borrowing a total of 11.2 trillion yuan (US$1.3 trillion), were recorded in the system.

Huang Jinlao, a senior researcher with the International Financial Research Institute under the Bank of China, said the system was crucial for preventing financial risks.

(China Daily June 10, 2003)