China’s Banks Will Use Blockchain to Fight Unscrupulous Borrowers
June 15, 2018
China’s Suning Bank, a branch of the country's largest retail business Suning, has initiated tests of joint blockchain to allow for banks of China to store and update data on citizens with bad credit record and use them when assessing credit risks.
As local agency Sina Finance reports, Suning Bank plans porting its database of unscrupulous borrowers to blockchain as this will allow for collaboration with other banks and establishing common database. Thus credit risks will be eliminated.
Each participant of the bank consortium will act as a blockchain node and gain access to the Suning Bank’s loaner blacklist. Nodes can update the common database via adding their own data.
It was not the first time Suning Bank uses blockchain for managing its credit affairs. In September last year the bank together with the China’s two other commercial banks CITIC and Minsheng established a consortium for internal letter of credit transaction records on blockchain. In March this year CITIC reported, the consortium’s blockchain platform has processed transactions to the tune of $156 million.