The Research Of China's Establishment Of Personal Credit Institution

Low standard personal credit and unbalanced credit have become serious problems when the reform and open up policy have been settled down in our country. Strong complaints about the chaotic credit system are revealed from every part of the society. There is a strong need of establishing a perfect personal credit system. According to the situation of social credit in China, the author analyses the main factors restrain personal credit's construction, at the same time, she gives suggestions on how to promote personal credit system in China. She also explains the principles and direction for personal credit, as well as the importance and urgency of fastening the steps of building up personal credit. Credit is one basic environmental condition for market economy's development with its main function as reducing transaction cost and promoting economic efficiency. Functions of personal credits are more significant in the era of economy based on knowledge. The author analyses the restrictive factors for personal credit, and work through specific node of personal credit system in developed countries. She also raises seven schemes for establishing a personal credit system of our own according to current conditions of China. This series of systems should be helpful on setting up a flawless warning and protecting system for personal credit. It could lead the development to a more scientific direction advance the development of socialism economy to a more healthy state. The article points out that legal system and property rights system would be one cause for credit crisis. Government sections losing their credits frequently would be another. The premise of setting up personal credit system is to regulate government behavior and functions through legislation. It directs the destination of personal credit to future development. The author provides suggestions on countermeasures to strengthen legislation, regulate government behavior, and build up personal credit mechanism and to construct personal IC identification card inquiry system. By using the approach of new institution al economics, this paper would be helpful on finding out the solutions for building up and consummate personal credit system in socialism market economy in China.