Chinese banks blacklist credit in a shared blockchain

Banking arm of Chinese retail giant Suning is testing a blockchain consortium that would allow participating banks to register and update a shared ledger of users with bad credit ratings.

According to local news agency Sina Finance, Suning Bank has developed the blockchain system to move its blacklist of suspect borrowers into a distributed database in an effort to enable collaboration with other banks in preventing frauds that are being used of credit.

Using the system, each participating institution becomes a blockchain node that can access the original blacklist shared by Suning Bank. Institutions that have nodes can update the list with their own data, the report says.

Founded by Suning in 2017, Suning Bank is one of the first online-to-off-line commercial banks in China, launched by private companies established to provide loans to small and medium-sized enterprises.

The move to share data on user reliability is the bank's latest use of blockchain technology in managing its credit systems.

In September last year, Suning Bank joined another blockchain consortium created by two other private commercial banks - CITIC and Minsheng - that use a blockchain system to record domestic credit card transactions.

In March, CITIC announced in its annual financial report that the platform has already facilitated transactions worth US $ 156 million.

Source: https://www.investopedia.com