Study On Development Strategy Of Consumption Credit Business In China Commercial Bank

Starting with theoretical and practical development of conception of consumption credit, this paper systematically researches history and reality of consumption credit development within china's commercial banks, reveals existing problems and analyzes business risks faced in the field of consumption credit. Basing on the above-mentioned analysis, the author comes up with measures and strategies to be taken to develop business of consumption credit.The author's analysis indicates that business of consumption credit has progressed in china and is highly promising. To turn the potential into realization, the government needs to build up a more relax economy environment for the business, and the commercial banks must use experience from developed countries as reference, work harder to resolve the various problems which challenge the business development and sharpen their competitive edges. The commercial banks should hold clear guidelines for business development: precisely master stages of business development; customer-focused and market-oriented; enhanced capability of avoiding credit risks; stick to core business; emphasis on cost-effectiveness.To develop their business of consumption credit, the commercial banks should adopt and implement operational and managerial strategies as follows:Set up modern operational system; improve credit risks management; build up professionally operational organization; realize securitylization of consumption credit; connect consumption credit to insurance; set up risk management model; set up institution of incentive and restriction; cultivate professionals; to be equipped with advanced information technology;Marketing strategies include: strengthen innovation and focuses on profitable product; stabilize personal housing mortgage and develop personal mobile mortgage; focus on developed areas; focus on medium-income customers; emphasize on cross-marketing; enhance propaganda of consumption credit.Policy and regulation institutions include: set up and perfect personal credit system; perfect consumption credit grantee system; government presents more support to consumption credit business; accrue loan interest at floating-rate and collect punishment interest upon principal repayment ahead of due.