On The Personal Credit System Under Market Economy Conditions

Beyond no doubt, we are encountering serious credit crisis now, since we may see the demoralization all around and heard the warning from the moralist, "Do keep the base line of the moral." Meanwhile, our country are establishing and developing the system of market economy where credit is critically needed to develop the consumer credit, and increasing the demand is the main way for the government to raise the rate of economic growth. But the credit crisis has directly influenced the development of the consumer credit, for example, the individual need the loan and is capable of paying off the debt, but the bank set up different procedures and reluctant to loan because of the risk of placing credit on the individual. Although the People's Central Bank of China issued in Feb. 23, 1999, yet the consumer credit has not notably increased in the last year because of the lack of Individual Credit System (ICS). All of these are displaying that the credit crisis is an obstacle of the further development of economic growth. Why credit crisis appears? What is ICS? And How to establish and perfect the system of individual credit in our country? In this article, I will throw light on them in three parts.The first parts expound the definition and functions of credit, and point out that the market economy is the credit economy. Besides the historical matter, the main reason for credit crisis is because we recognize the credit only in moral way and neglect the system designing for credit. We should recognize credit both in moral angle and in economic way, and treat credit as intangible assets that is based on the trust between each other and belonged to each individual. Part two concentrate on disclosing the concept and content of credit, and demonstrate that it is because the lack of ICS that the credit crisis occurs and spreads out in our country. Individual credit is the basic concept in the credit system in market economy. And compare with other form of credit, the individual credit is more risky, innumerable, and easy to identify. The establishment of ICS is significant for the development of our country.In part three, I draw a conclusion through viewing the history of ICS in U.S.A., German and Japan, and analysis the problem of their system, which is that we shall adopt a scientific method of identification of individual to avoid Identity Theft during our establishing and perfecting the individual credit system in our country. When it comes to building ICS, I suggest that we shall clear up three main points first, that is, the relation between the character and property of individual date with the credit collective right of the credit report agency, the protection of individual rights and interests, and the obligation of violating the law which is related to individual credit as well. Besides, we shall start the enactment of "Individual credit act".In a word, we shall recognize and define the concept of credit both in moral and in economics during our approaching to socialism market economy, and treat credit as intangible assets that is based on the trust between each other and belonged to each individual. Let the honest people to be even more honest, and the dishonest to become honest, which is more effective than cruel torture and severe punishment.Comrade Deng xiao-ping has said "A good person may do error things under bad system while the bad one would do something good under good system," therefore, it is of great importance for us to establish and perfect the Individual Credit System the proper way.