Establishment Of The Credit System In China's Financial Reform And Development

Since lack of credit has become the bottleneck of China's financial deepening and economic development, it is crucial to establish a more healthy credit system in China. This paper, adopting a research method which combines theoretical analysis with positivist analysis, bases its research on China's reality as well as some relevant requirements in The New Basel Capital Agreement, cites plenty of research achievements from both abroad and at home, and uses for reference the experience of many developed countries as well. It analyses the status quo of bank credit, the principal credit in China, discusses the general principles of the establishment of the credit system, and puts forwards some specific proposals on the establishment of the credit system in China. This paper points out that the establishment should be in accordance with a basic thought: "the reform of property rights is the premise; the improvement of the intermediary credit service system is the key; the construction of credit punitive mechanism and legal system is the guarantee; the cultivation of the credit culture is the foot-stone; and none of the above will be fulfilled without the transformation and proper exertion of government functions." The paper indicates that, on the premise of the reform of property rights, the choice of modes of establishing a healthy credit system in China should follow the way of marketing. Therefore a lot of work remains to be done such as opening credit inquiry data, founding the data base, establishing a scientific credit rating system, forming a credit punitive mechanism, etc. The bank should also play its role in the establishment by perfecting the existing credit management system, forming an effective credit risk precaution mechanism, and carrying out the work of interior credit rating.