Data Sharing Improves Bank Service

After two years of operation, the positive credit data sharing system has benefited both borrowers and lenders, reducing borrowers’ financing costs and lenders’ credit risks, Hong Kong Monetary Authority chief executive Joseph Yam said. Under the scheme, positive credit data – information on an individual’s credit exposure, credit limits, outstanding debt and payment history – are made available to lenders with the consent of the individual.

Negative credit data refers to an individual’s default record.

When the system was introduced in August 2003, there were concerns about its impact on privacy, but Yam told the Legislative Council he had not received any complaints about lenders abusing the system.

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