Research On Penalty System For Breaking Credit

Modern economy is credit economy, but breaking credit is a quite serious problem which have been in existence in our economy for a long time. Such phenomena as fake or inferior quality commodity, breach of contract and business fraud are very popular, chain debts and bad assets occur time after time, all kinds of economic crimes are on the rise in successive years. So credit has become one of the most rare resources, and the system of credit has become urgent, which not only affects the order of market economy and trade security but also hinders the development of the productive force. It is necessary to set up credit system, especially penalty system for breaking credit at the present.Penalty system for breaking credit is a social mechanism of social credit system, which has the function of punishing the breaking credit acts. To use economic means and moral condemnation means to govern the universal presence of market failure behaviors, such as breach of contract and commercial fraud, to punish those who are not honest in the business transactions and create a social environment of honesty and trustworthiness, to set up efficient penalty system of breaking credit, we need to take the following measures: First, set up a monitoring system of which our government can punish the frauds; Second, establish market withdrawal prohibited from entering the system for the credit lost persons; Third, set up judicial system which match with penalty system of breaking credit; Forth, set up social condemn system; Last, create a good faith disciplinary conditions to speed up the establishment of penalty system of breaking credit.