CBOL: Cross-Bank Over-Loan Prevention, Revisited

Abstract

With the development of credit businesses, privacy data leakage and data accuracy in loan transactions among different banks tend to be worrisome issues hindering the prosperity of the industry. To address the problem, we propose a blockchain-based cross-bank over-loan prevention (CBOL-ring) mechanism, which ensures that, on the one hand, the plaintext of loan transactions cannot be access to neither participants on the nodes except the bank that handles loan/repayment requests, so as to prevent the borrower from loaning without revealing their privacy data; on the other hand, the other participants are able to prove the effectiveness of the plaintexts through checking the ciphertexts on the blockchain. In addition, we propose a blockchain-based cross-bank over-loan prevention mechanism with low communication volume (CBOL-bullet), which reduces the size of the range proof generated by the BBCBOLP mechanism, thereby reducing the size of the communication volume and saving resources during the data transmission process. Finally, we analyze the security and performance of the two mechanisms, and compare the communication volume of the two mechanisms.

Blacklisting Based Anonymous Authentication Scheme for Sharing Economy

“…When we turn our attention to privacy preserving protocols concerning on sharing economy applications, we may see following works. (Hu, Zhao, Zheng & Wang, 2020) employs a protocol to prevent cross-bank over loans. There is a similar intention behind this work and ours, as both try to provide some kind of accountability on borrowers without harming their privacy concerns at the same time.…”

Thematic Analysis of Financial Technology (Fintech) Influence on the Banking Industry

“…In line with the general literature on Fintech, the studies on blockchain-based cryptocurrencies have highlighted the potential of new technology to reach financially underprivileged population groups. It may be challenging for digital marketing to penetrate rural regions with poor network connectivity, while alternatives such as micro-banking have security flaws (Hu et al 2020). The global nature of cryptocurrencies allows for potentially more secure and lower-cost transfers accessible to individuals in remote regions through smartphones (Barrutia et al 2019).…”

Driver Countries in Global Banking Network

“…The global financial-economic system with various economic channels between countries is a highly complex system with intricate inter-dependencies. Cross-border bank lending activities have experienced remarkable growth over the past three decades [ 1 , 2 , 3 ]. As a key component, internationally connected banking system plays an important role in the global financial architecture [ 4 ].…”