Development Of China's Individual Consumer Credit Difficulties And Countermeasures

Consumer credit is a financial product that emerges to harmonize the conflicts between consumption and production, when the economy developed to a certain stage where the credit system is quite sophisticated and the growth rate of consumption lags behind that of production. Consumer credit in China began with the reformation of housing system, but it did not come into full-scale implementation until the guide for personal consumption credit operation was issued by the central bank in March 1999. In China, consumer credit can be an important measure to adjust consumption demand, stabilize the economy and ameliorate the quality of commercial bank' s assets.However, the development of consumer credit of our country is not satisfactory. The consumer loan is only a small part of the commercial banks' total loan, and the gap is large comparing with developed countries. How to deeply develop consumer credit in China and fully exert its positive effect on consumer credit, which is a task for economical researchers.On the basis of consumer credit theory, and together with the practice in China, this dissertation analyzed the economic and financial function of consumer credit. Through detail analysis of current situation, it pointed out the potential risk of consumer credit in China and probed into the countermeasures. In the end, major conclusions were concluded, and practical suggestions were offered.Comparing with existing publications, this dissertation carried out a more comprehensive study on consumer credit if China, expanded the depth and width of the research. From this point, this dissertation is of theoretical value and practical importance to develop consumer credit and push forward the economic development.This dissertation falls into six chapters.Chapter One briefly introduces the background of the research and the reason of choosing this topic. It also gives an overview of existing research fruits in China and abroad, and sets forth the author' s methods of study. Chapter Two gives some comments on consumer credit theories, including Credit risk management theory of commercial banks, asymmetric information, and bank credit theory, which lays a theoretical foundation for the following chapters.Chapter Three studies the development and restraints of. It describes the birth and development of consumer credit in China, emphasizes on the detailed analysis of external and internal restrictive factors of financial institution.Chapter Four studies the birth and development of international consumer credit, finds out the advantages of developed countries which is useful for us to learn.Chapter Five gives some strategies on developing consumer credit in China. On the basis of the previous analysis, in the light of our current situation, this chapter conducts detailed analysis on both external environment and commercial bank, and highlights the strategies for further developing consumer credit in China.Chapter Six is a summary of the whole dissertation.