Legal Prevention Of Consumption Credit In China's Credit Risk

With the development of consumption credit in our country, its credit risk emerges gradually. Besides of daily management and supervision of commercial bank, the law can play a more important role in reducing the risk of consumption credit. This article is focus on discussing this item in two sections with five chapters.Chapter I Summary of Consumption Credit and Chapter II Credit Risk Analyzing of Consumption Credit constitute the first part. The chapter I introduces the connotation, essential characters, categories, and development of consumption credit. Chapter II discuses the concept, characters, categories of credit risk of consumption credit firstly. Then the theoretic analysis of credit risk was carried out in a legal and economic view. Finally, the necessity of risk prevention and defence was described.The second section is the main part, including the last three chapters. The chapter III depicts present situation of consumption credit in our country. Firstly, the actual manifestation of these credit risks in our country were summarized (the credit risk by disobeying contract compelled, the credit risk by disobeying contract with evil entent and the credit risk by disobeying contract on reasonableness ground) and the reason was analyzed relatively. The chapter IV Comparison and Reference mentions the most important legal systems on risk defence, the legal system of the individual credit checking and the legal system of the insurance for consumption credit in other words. Although these legal systems were established only for development of consumption credit, it did ensure and promote the development of consumption credit greatly.Just because the deficiency of law system on prevention of the credit risk of consumption credit, The last chapter Status and Improvement present author's suggestion on different credit risk based on comparison and reference.