Perfection And Development Of The Modern Pawn Broking In China

The pawn broking is one of the oldest trades in the world, which can be rated as founder of modern financing. Though it has always been in the less important and auxiliary position in the economic fields, it is a flexible way to adjust borrowing and lending of money to meet small and medium-sized enterprise's or resident individual's increasing needs conveniently. It remedies the deficiency of the bank credit effectively, and its functions are affirmed and paid attention to gradually. Through reviewing the developing history of pawn broking of our country, comparing the development advantages of modern pawn broking, explaining the current situation of our modern pawn broking, this thesis analyzes the new developing trade in an all-round way and lists the questions it has. Then, by consulting the foreign countries'advanced experiences, thesis probes into these questions and studies how to actively promote this trade. 1. The Origin and History of Pawn Broking in China The pawn broking is regarded as the oldest financial trade in our country. In different historical periods of our country, it has played different roles on the social economic development. Investigating the origin and history of the pawn broking helps understanding present pawn broking completely. The origin of the pawn broking has gone through three stages: from the mortgage behavior of broad sense to the pawn behavior then to the pawn organization. Among them, the appearing of the pawn organization in the Northern and Southern Dynasties indicates the forming of the pawn broking. Later, the pawn broking develops in a curve situation with the changes of the social shape and commodity economy. More than 1800 years'history of China Pawn broking can be summarized as seven sentences. 2. Comparison of the Modern Pawn Broking Through vertical comparison between modern and traditional pawn broking and horizontal comparison between modern pawn broking and banking, this part shows the trade's characteristics, advantages, position and the trade functions. First, the comparison between modern pawn broking and traditional pawn broking. The modern pawn broking continues inheriting some essences of the traditional pawn broking. The modern pawn broking still takes the hypothecates with the property, the time limit and the lending with interest as the main management mode, and is still the usury fund financing that laws and regulations allowed. The modern pawn broking inherits the traditional pawn's functions including financing function, appraising function, keeping function and selling function. The modern pawn broking is still in the non-leading position in the social economic financial market. As the same as the traditional pawn broking, the modern pawn broking still belongs to the financing channel of the non-banking financial institution, which is a kind of flexible and convenient way to adjust fund's surplus and deficiency in the social economic life. However, the modern pawn broking is the result of reform and socialist market economy, it must have essential differences with the traditional pawn broking in many aspects. First of all, management aims are different. Old-fashioned pawnshop regards exploiting as "aim"; but the modern pawn institution is an effective means of the financing for the purpose of offering the financial service to small and medium-sized enterprise and individual. The completely different management purposes of the two are shown from the target and use of the loan. Secondly, business scopes of the two are different. The traditional pawnshop deals in and regards tangible property as the mortgage product mainly; but for the modern pawning house, it can also lead"intermediate business"such as appraising, besides traditional business and innovative business. Finally, in function of the pawn broking, the modern pawning house carries on a certain degree innovation on the basis of traditional pawnshop too, and have entrusted to the pawn meaning to a wider extent. Then, the comparison of the modern pawn broking and the banking. The pawn broking is the source of the modern banking. As the banking developing from the pawn broking, it must have some something in common with the pawn broking. They both manage currency. The purposes of management are the same. They have same business nature. The ways of loan are the same basically. The organizations'characteristics are same, etc. But as non-mainstream financing channel, the modern pawn broking has a very great differences comparing with the banking, the core of the financial system. From the macroscopic perspective. Firstly, the positions and functions of the two are different. The bank is the key of the financial system, occupying the leading position in the economic fields; but the pawning institution can only play general auxiliary function in the economic life. Secondly, the business scales and the organizational forms of the two are different. The bank is mostly state-run individual proprietorship or big enterprise of shareholding system nature; but the pawn institution only has several million registered capital with just two kinds of organizational forms. Finally, business scopes of the two are different. The bank also manages the intermediate business besides assets and debt business; but the pawning house is only engaged in the business of the assets, rare of them can manage the auction, the consulting business. From the microcosmic perspective, the differences between them are shown in the following several aspects outstandingly. First, the pawn loan process is simple, convenient and swift. Second, the pawn regards small andmedium-sized enterprise and individual as the target of the loan. Third, the pawn loan is not limited on the amount, and generally takes little amount loan as the main business. Fourth, the condition of the pawn loan relies mainly on material object mortgage, regards personal credit as supplement. Fifth, the collateral is more extensive. Sixth, the general pawning house only supplies a kind of short-time loan. Seventh, the pawn broking is still the usury fund financing that laws and regulations allowed. Just because the modern pawn broking is different from the traditional pawn broking and has many special places from the banking, it can exist in our society and has bright future. 3. The Current Situation and Existing Problem of the Pawn Broking Ministry of Commerce statistics show, up to the end of 2003, there are 1375 pawning houses, 34 branches and 11000 pawn employees in our country, and the registered capital is totally 9,500 million Yuan. The pawning house not only soars steadily on the quantity, its portfolio has also been presenting the trend of rising all the time. We can say the whole trade has entered a fast developing stage. Though the pawn broking shows the flourishing growth momentum, the questions exposed can't be ignored either in the trade. From the view of supervising, un-admitted supervisor, no-perfect supervise regulation, and the lack of the trade organization become the most outstanding three questions for pawn broking in the external development environment. From the point of management, management theory lags behind, management mode is single, qualified employee is in shortage and business innovation lacks are the obstacles in the pawn broking internal development environment. 4. Norm, Perfection and Development of the Pawn Broking in China This part makes analyzes and countermeasures to above-mentioned problems, so as to promote the full play of the functions and the development of the pawn broking. At the aspect of supervising. First of all, should affirm the pawn supervisor. The management of Ministry of Commerce not only meets the actual needs of the pawn broking development, but also accords with the...