Oct
10
Snooping in the Bathroom to Assess Credit Risk in China
ByExtensive consumer databases are not in place for lenders to check, but companies are scrambling to crack the credit code.
China wants to nurture a credit culture to get Chinese families spending instead of saving. Judging creditworthiness is sometimes done at a very grass-roots level.CreditMinh Uong/The New York Times
KUNSHAN, China — Banks and other lenders typically look at borrowers’ credit histories, tax forms and other financial information to determine whether they will get paid back. In China, lenders also look at their bathrooms.
Lenders have to be creative. As the economy slows, the government wants to nurture a credit culture to get Chinese families spending instead of saving…
Snooping in the Bathroom to Assess Credit Risk in China
