The importance of building a credit registry system A modern market economy is based on credit, where the circulation of commodities and financing are dependent on credit. In the absence of a credit culture, debts can go unrepaid, lenders are troubled by arrears, and the market is swarmed with fake and shoddy goods.
As a result, huge risks face enterprises and individuals, affecting the normal functioning of the economy. Therefore, a socialist market economy has to be built on the basis of a proper social credit system.