Abstract: with the development of market economy in China, the improvement of people's living standard, increase the demand of the life, especially the increase of house, car of this kind of big ticket items demand, but because of personal income is limited, can't buy this kind of big ticket items, so in order to meet the needs of the market, to meet the demand of the people, the business bank launched the personal consumer credit business. Personal consumption credit in China started late, not much experience in all aspects of the theory, with the expansion of the scale of the individual consumer credit, consumer credit is completely unmasked, seriously affected the healthy development of personal consumer credit business, so to solve all kinds of problems of personal consumption credit in our country becomes urgent need not to be.

Keywords: personal consumption credit Consumer Commercial Bank Laws and regulations

 

1, the introduction

1.1 topics on the basis

With the development of market economy, the introduction of personal consumer credit business, personal consumer credit business is also very good to meet the needs of the development of China's market. For the consumer, the personal consumption credit business can be very good to enjoy the advantage of consumer financial products, bring convenience. For the commercial banks, personal consumer credit business is the result of small loans and non-performing loans, less than the business enterprise production and management, the loan risk is much smaller, giving priority to the development of commercial banks has become the object of[1], and so on, personal consumer credit business has been effective development in our country. "As of 2006 4 at the end of the balance, credit consumption in China is 2265500000000 yuan, than the beginning of 1997 increased by 118 times"[2]. In addition, the variety of personal consumption credit products have also been developed, moving in the direction of diversification, including: personal education loans, personal travel loans, housing loans to individuals, individual housing renovation loans, personal consumer auto loans, large consumer durables loans.

The development of market economy, due to China's relevant laws and regulations are not sound, the lack of the management of commercial banks, and some restricting factors in our own individual consumers, resulting in personal consumer credit business in our country has some problems, therefore actively seeking personal consumption credit in our country, find out the corresponding countermeasures, can very good development of domestic personal consumption credit business.

1.2 the research significance

Firstly, personal consumption credit in China: Problems and countermeasures, have important meaning to supplement the theory research about this aspect of the current domestic academic circles. In addition, the personal consumption credit in our country have the full market prospects, the current due to the influence of some non-standard constraints, personal consumption credit in China's growth rate is far below the developed countries, is still in the development stage, development, growth in the near future, therefore research on personal consumption credit in China: Problems and countermeasures, there are very important realistic meaning, hope to help to solve all the problems of our current individual consumption credit business, promote the personal consumption credit in our country prosperity.

1.3 the research status at home and abroad

Personal consumption credit business originated in foreign countries, research and development in foreign countries has been through 60 years, theoretical research is also very rich.

In 1941, David Durand wrote "Risk Element in Consumer Instalment Lending" in one article, constructing discusses consumer credit model, put forward the credit rating standards, such as: the borrower's income, the borrower deposits, fixed assets. In addition, in personal credit analysis method and theory is also achieved fruitful results. American put forward the famous: FICO (Fair Isaac & Company), put forward five personal credit evaluation criteria, including: credit history (account opened years), the bill (whether history to repay its debt on time etc.), debt (frequency of use credit card debt), type of loan application number, is the use of credit and other financial products.

Compared with developed countries, China's consumer credit research started late, various research work was also carried out. Even so, also achieved certain results. In 1999, China Construction Bank "personal credit rating procedures", assessment method is also one of the earliest on personal credit evaluation. Evaluation indexes mainly focus on: age, education, occupation, family income, assets, etc.. This is quantified, and then divided the credit rating. Zhang Maolin, Wang Fei's "development risks and policy on personal consumption credit control" one article, pay attention to risk, personal consumption credit in our country think: risk factors include not only individual, there are various kinds of laws and regulations are not perfect, suggestions to strengthen the government's macro regulation and control. "Risk management" personal consumption credit of commercial banks in China of a text, the author thinks the risk from market, credit, operation: the bank, the risk management only good, in order to promote the healthy development of the individual consumer credit business.

Theory 2, the personal consumption credit

2.1 the meaning of consumer credit

Personal consumption credit banks and other financial institutions according to the individual consumer credit, guarantees, mortgages, a credit to deliver goods to consumers in the form of currency. According to the loan object classification, personal consumption credit can be divided into two kinds, the seller's credit buyer's credit. The buyer's credit including: tourism, short-term credit loan, personal loan. Seller's credit is the large sale enterprises loans, including: personal car loans, housing loans to individuals.

Classification of 2.2 of personal consumption credit

Classified according to different standards, the personal consumption credit can be divided into different types. Use, collateral, repayment methods, the term of the loan to divide, the personal consumption credit can be divided into the following four categories:

2.2.1 according to the use of personal consumption loans, personal consumer credit include the following: personal education loans, personal travel loans, housing loans to individuals, individual housing renovation loans, personal consumer auto loans, large consumer durables loans. In the personal consumption credit types, individual housing loans and personal automobile consumption loans first appeared in China's commercial banking business, with the highest rate of credit business is our personal loans. According to the research of our country scholar: "as early as in 1987, the Construction Bank China began to apply for individual housing loan business in Jiangmen City Guangdong Province, Foshan; in October 9, 1998, approved by the people's Bank and Construction Bank, Chinese recovery run a personal automobile consumption loan business in china"[3]

2.2.2 in accordance with the personal consumption loans, personal consumer credit include the following three types: credit loans, secured loans and credit (matter) and loans. First, credit based primarily on personal credit, the commercial banks to personal evaluation after the audit, can obtain loans with the bank signed, does not need the third party guarantee. Secondly, secured loans is in addition to personal reputation, also need to have security guaranteed loans. If the borrower is not fulfilling the obligation of repayment, then by the guarantor to assume responsibility. Finally, against (quality) and loans with their own fixed assets, real estate property as collateral for the loan lender, if borrowers not fulfilling the obligation of repayment, the lender shall have the right to deal with collateral repayment.

2.2.3 in accordance with the personal consumption loans repayment, the personal consumption credit can be divided into the following three types: personal consumption credit loans, one-time payment installment consumer credit and consumer credit. One of the most typical personal consumption credit loan is a credit card, consumers can not regularly consumed card amount, a certain period of time to pay off.

According to 2.2.4 loans for personal consumption loans, personal consumer credit can be divided into the following three types: short term consumer loans, consumer loans and long-term loans medium. The short-term consumption loans for a period of three years; intermediate consumption loan for a period of three to five years; long-term consumer loans has more than five years, less than thirty years.

Characteristics of 2.3 personal consumption credit

Other business of personal consumption credit is different from the commercial banks, with the typical characteristics of their own. First, individual. Personal consumption credit service object is a natural person, a legal. Second, consumer. Use of personal consumer credit in consumption. Third, flexibility. Personal consumption credit for flexible, the lender can according to the demand of application. Fourth, the loan amount is small. Personal consumption credit lines between 1000-50 million, will not cause too much controversy.

In 3, China's personal consumption credit

3.1 of China's consumer credit business

Personal consumption credit business began in China in twentieth Century 80 time metaphase. To 1998, our country appeared the automobile consumption loans. At the same time, 9 months of 1998 the state promulgated the "auto loan management approach (pilot)", promoted the development of automobile consumer credit business. Since then, China's personal credit industry is also continuously push new products, personal consumer credit business has continued to expand and mature, more rich and perfect service system, mainly including: personal education loans, personal travel loans, housing loans to individuals, individual housing renovation loans, personal consumer auto loans, large consumer durables loans and so on, these financial products are not only enriched the personal credit market, also can effectively meet the needs of the customers. In addition, the total amount of loans of a significant leap. But in recent years the development of individual housing loans, automobile loans or to show strong momentum, according to statistics, the end of 2000 personal credit balance of 699000000000 yuan, to the end of 2008 personal credit balance reached $3.7, increased by 60 times, more than in 2000 among them, personal and long-term consumer loans of $3.3, individual consumer loans of $0.4.[4]

The differences between the 3.2 individual consumption credit of our country area

Although my personal consumer credit business types and the total loan amount enhanced, but because the existing laws and regulations of China and the supporting system is not perfect, the personal consumption credit market is not very boom, the development of small scale, was significantly lower than that of developed countries, and the personal consumption credit in our country have distribution uneven, there are regional differences. Beijing, Shanghai, Guangzhou, Jiangsu and other provinces of the proportion of larger, other provinces of personal consumer credit business is very rarely. Also our country the large gap between the East and the west, lower than the eastern region in western area of personal consumer credit business obviously. In the individual consumption credit business, personal housing loan proportion is large, the imbalance development structure. With the development of personal consumer credit business in China, also appeared a variety of problems, these problems mainly come from individual consumers and banks in two aspects, but these problems to a certain extent, restricted the healthy development of personal consumer credit business in China, to be solved.

4, my personal consumption credit problems

4.1 of consumers

4.1.1 concept of constraints

"Save", " Thrift" is China's culture of precipitation, is the traditional concept of consumption in China, and ingrained. This kind of consumption concept exists now, and will be a certain period of time to exist for a long time. Influenced by this kind of consumption concept, our people especially the older people are often after the first consumer savings, not to too much advance the concept of consumption. This idea and the personal consumption credit, "spend tomorrow's money today Yuan dream" obvious discrepancies. Therefore, a certain element restricts the personal consumer credit business in China grow. Although the rapid development of economy of current our country, all kinds of economic philosophy has been publicity, the majority of people's consumption concept has been a degree of change, but the majority of financial products also lack the cognitive, personal consumption credit awareness is not enough, the natural use of the business people will not be too much. So if people's consumption concept is not effectively change, the essence of the change, personal consumer credit business has become the "bricks without straw", still in the free state, the function should not play.

4.1.2 personal credit risk

Firstly, the actual income and expected income of current our country residents income differences, can not be measured by money, income is not high in transparency, so these uncertain factors also influence the personal consumption credit business. Secondly, the current personal credit evaluation system of our country is not perfect, for there is no specific standard investor's credit and personal credit situation, the lack of a unified, complete credit system, personal credit file information is the single closed management department, could not be shared between departments, especially the bank is also difficult to obtain personal credit information. For some lenders malicious overdraft, long loan phenomenon is difficult to restrain. According to the survey of relevant departments: at present our country every year because of dishonest behavior caused economic losses of nearly 6000 billion yuan. Therefore, credit risk also has a very important impact for personal consumption credit in china.

Effect of 4.1.3 revenue expenditure

Life expenditure including personal and family from birth to old living expenses, and for investment and the use of creditThe financial expenditure management. Some people are spending, has a home burden, the main purpose is to pay money for personal and family expenses. Contains: living expenses: including the basic necessities of life such as recreation of medical expenses of the family. Financial Expenditure: including loan interest expenses, insurance premium expenditure, investment procedures expenses etc..

From the work income, so the wage income of our normal circumstances with work experience and improve the,, our income increases with age. But on the other hand, our expenses also increased along with the age growth, the reason is the burden of life more, including the life of the home, car, children's education expenses and the quality of life the pursuit of such as the purchase of luxury goods. Therefore, people with low income can also be savings, rather high income earners do not necessarily retained high savings. Along with the development of market economy is not stable, soaring prices, consumer spending is increasing gradually, but there is no corresponding increase in income. Therefore, a certain extent affect consumer debt consumption intention.

4.1.4 gap in Education

The traditional concept of the impact of the ingrained, a lot of people on the banks of the knowledge limited to deposit a road,

Refused to accept the new financial products, it is particularly prevalent in the elderly population in china. In addition, compared with westerners, most Chinese was no enlightenment educated economy, also does not have the financial knowledge received systematic education in schools, the lack of proper understanding of current our country commercial bank financial products, the contact group is also known by the contact indirectly crowd. But the special finance talents can effective cognitive commercial bank financial products, especially the personal consumer credit business, for their own use. But the current our country commercial bank financial products beyond count, a wide variety, even finance experts, nor for each item of financial products to the extent of the master, to solve the Chinese just ordinary people food and clothing. There is a serious gap between urban and rural areas, the education of our country is lower than the gap, gap between East and West, different schools with teachers are also different, so that the level of education among the educated are also different, so to some extent, our people of the financial education degree also affects the development of China's personal consumption credit business.

4.2 commercial banks

Credit evaluation mechanism of 4.2.1 bank is not perfect

First of all, for the individual consumer credit business of the applicant, the commercial banks for the credit evaluation of individuals, only observe the person in the credit bank. But often this assessment is one-sided, can't reflect the consumers in the domestic financial institutions in credit. Secondly, the loan review too formal. Customer manager for Shen individual audit only a data verification, did not fulfill the conversation system, the authenticity of the data is unable to verify. This formal audit easily invite wolves into the house, the harm of bank capital security. Such as the Construction Bank branch in Shenzhen city in 2003 6 at the end of Chinese found a total of seven projects are "fake mortgage". As shown below:

Unit: million

Property name	The balance of loans	The adverse balance	The rate of bad
Lake Garden	1844	1844	100%
Fragrant beauty building	731	572	78.25%
Xiangzhu Park	7062	6627	94.32%
Crystal beautiful garden	1591	930	58.45%
Yongan Xixiang commercial city	948	948	100%
Huajia square	1149	1149	100%
Hong Ying Building	4387	4192	95.55%
Total	17713	16376	92.45%

The risk of 4.2.2 collateral

Against (quality) and loans with their own fixed assets, real estate property as collateral for the loan lender, if borrowers not fulfilling the obligation of repayment, the lender shall have the right to deal with collateral repayment. But often this kind of collateral risk exists in the. Changes in the natural environment, natural disasters, man-made disasters may lead to collateral, collateral value loss caused by. In addition, with the development of time, the market price fluctuations, the mortgage market value also changes, if the lender fails to perform the obligation of repayment, banks mortgage goods, also need to spend a lot of manpower, material resources, financial resources. This will bring a lot of risk to the bank.

4.3 legal system is not perfect

Current our country is not a national law on consumer credit activities. For normative legal documents, adjustment of consumption credit relationship in our country, the level is relatively low. Such as: "the individual time deposit certificates small mortgage way" (the people's Bank of China 1991 released in December 12th), "credit card business management approach" (the people's Bank of China publishing, 1993 January 1 onwards), "self commercial bank housing loans management Interim Measures" (Yinfa No. [1995]220), "on personal consumption credit guidance" (the people's Bank of China 1999 year in March 2 day release), and the "management approach", "guidance" kind of legal documents, the lack of a certain authority, fail to achieve the desired level. Along with the development of personal consumer credit business in China, increasing financial products, the market turmoil, the urgent need to unify the state legislature issued nationwide consumer credit legislation, to regulate our financial sector financial order.

5, the countermeasures to perfect the personal consumption credit problems

5.1 of consumers

5.1.1 to change the consumption idea

With the development of Chinese of market economy, the emergence of deflation, the market has gradually transferred to the buyer's market, this scene, in the domestic advocate advance consumption, moderate debt is very necessary. Public opinion of the media and the government should intensify propaganda, at the same time, schools and other educational institutions should also include the economic class, let the students understand the current financial products in China, master financial products advantages, disadvantages. On the basis of financial products to enhance public understanding and awareness, gradually changing to guide our people consumption idea, change "savings -- consumption -- the consumption pattern of" savings "-- consumer loans -- savings owing on the loan" model, let no debt consumer population change idea, to moderate consumer debt, then enhance the whole nation advance consumption.

5.1.2 increase in consumer income

The current our country people a big gap between rich and poor, some people only simple work income, no financial income, some people is more a financial income, thus increasing the income. The current Chinese economic situation, our country people's income mainly includes: salary, commission, bonus, proprietary business income and work. Financial income mainly includes: interest income, rental income, dividends, capital gains. Have a great relationship with physical method level of fiscal revenues: some people is the wage income is low, after paying the necessary cost of living is really no money management, this is the type of person who should strive to improve their competitiveness in the workplace, efforts to increase their labor income; another is its higher income, but the lack of long term planning, for their children's education, retirement planning, pension for not enough attention, while excessive consumption. This is the type of person who should gradually strengthen long-term planning consciousness, reduce their consumption expenditure, the remaining funds will be used to finance the purchase of products. Only in this way, in order to increase income, and narrow the gap between rich and poor, let people earn more, and better purchasing power, drive China's personal consumption credit.

5.2 commercial banks

5.2.1 perfect the internal control mechanism of the bank

First of all, the tissue bank internal staff to learn the laws and regulations of the country's new, to ensure that the bank staff to correctly grasp and understanding of the relevant national policies, and ensure the legitimacy of loan business, guarantee the loan guarantee, loan period, interest rates, repayment and so on are in line with the laws and regulations, and ensure the legitimacy of the loan program of work. Secondly, strengthen effective audit to the lender qualification. Requirements related to staff in the review of customer information at the same time, the implementation of meeting and talking system, authenticity assessment information to lenders, is also important to contact for verification, including phone number and home address. The bank people fill out the opinions of examination and approval, the approval responsibility system, in order to restrict the staff duties. The establishment of personal consumption credit "black list" system. Finally, supervision, to strengthen the management of credit after. The establishment of supervision and management of the specialized agencies, follow-up reports of personal consumer credit, such as a suspected of false mortgage phenomenon, report to the relevant departments to immediately, for special investigation and study, such as false mortgage is true, the bank immediately according to the disciplinary mechanism for the individual implement certain punishment. Such as: stop all related to the personal banking business, prohibition of the individual with the bank any credit business.

5.2.2 standard operation procedure

First of all, on arrival (quality) the implementation of collateral assessment strict mortgage loan applicants, strengthen the management of mortgage, mortgage procedures matters strictly in accordance with the laws and regulations of the state, the market valuation organizations specialized personnel for mortgage. Secondly, perfect the guarantee system. Strict scrutiny when the economic strength and income. Strictly take care of the existing national legal operation, according to the loan, standard operating procedures, prohibit the clerk of the black box operation. Finally, improve the loan procedures and contract, to act in accordance with principles of loans, simplify loan procedures.

5.2.3 strengthen propaganda

First of all, the Commercial Bank of our country should increase the bank's financial products propaganda, set up the information desk special, for the commercial bank financial products, especially in the aspect of personal consumer credit products to provide special consultation, set up a special hotline for customers, eliminating confusion, exclude the difficulty and anxiety. Secondly, the transformation of people's consumption idea, only commercial banks propaganda efforts alone are not enough. In the environment of market economy, give full play to the regulatory role of the market, the government's propaganda cooperation, make full use of the government, the role of the market, guide people to change the consumption idea.

5.2.4 do city pilot

To promote the growth of personal consumer credit business, in addition to the commercial banks and government departments to strengthen the propaganda, also need to carry out pilot city, doing experimental work, in the pilot work experience, lessons, and comprehensively promote. The selection of pilot city can be a reference index in accordance with honesty and economic conditions, population quality, scientific and technological strength, geographic location, economic developed city in China can be. Such as: such as: Beijing, Shanghai, Guangzhou etc.. In personal consumption credit system, personal credit evaluation system actively, improve the credit assessment index.

6, the conclusion

Although the personal consumer credit business in China started late, there are some difficulties, but the personal consumption credit is still in the initial stage of development, the market space is large, potential, development is also the point the day and await for it. Therefore, in order to market norms to better regulate the financial order, to consumer, commercial banks, as well as the joint efforts of the government. The consumer actively to change the consumption idea, enjoy financial products especially personal consumer credit business convenience; laws and regulations more powerful government, actively coordinate the relationship between commercial banks and consumers, to ensure that the commercial bank's standardization, institutionalization; commercial banks strictly in accordance with the law, regulate the credit program, establishing and improving the personal credit evaluation mechanism, reduce credit risk. Therefore, the timely detection of problems, solve the problem, a bright future is bound to bring personal consumer credit business in China, serve better for people.

 

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