The Risk Management Of Personal Consume Credit In China

Consumer credit is a financial product that emerges to harmonize the conflicts between consumption and production, as the economy developed to a certain stage where the credit system is quite sophisticated and the growth rate of consumption lags behind that of production. With the continuative development of economy and standard of living in China, personal asset has much improved, and the individual credit demand also has greatly increased. "Credit consumption" enters our life gradually. To satisfy people's increasing demand for credit consumption, the commercial bank presents the loan of credit consumption to public in time. The launching of credit consumption is much important to extend inside need, promotes the national economy development and raises the people's material and culture life level, improve the bank loan structure, and increase the bank interest. Through the development of the last few years, credit loan has already become the new profit growth point of commercial bank. But, along with the extension of the credit loan business scale continuously, the credit risk exists in the credit consumption exposes out gradually. Particularly the credit risk problem,has already become the shackles of our country's credit loan to healthily develop. The credit business in abroad has already formed extremely mature of credit loan market and loan valuation system to evaluate people's credit. But in China, people's reputation consciousness is weak; the valuation system does not built up completely, because we lack the advanced valid valuation method and perfect social laws and society guarantee system, the credit risk of the loan increase gradually in commercial bank. How to lower the risk of consumption loan, especially the control of the credit risk, has already become the extremely urgent problem to be resolved in our commercial bank.The article use the following methodology: 1.the idea combined with theory and practice. It mainly contains several western economics theories, including credit effective demand theory, expected income theory, life cycle theory and asymmetry information theory.2.the idea combined with historical investigation and experienced conclusion. The article emphasizes the reason for emerging of credit risk in the history of consume credit when examine the history of consume credit in China. The purpose is to find some thing regular.From the above statement, we can know that the problems which this article deals with are obvious. How the commercial banks control and manage the risk in personal consume credit business when they have to enlarge the size and amount of personal consume credit business continually. Then the article mainly presents the relevant measurements from the view of commercial banks and the government.This article can be divided to four parts. The first part is summarization about the Personal Credit Business of the commercial bank. This part introduces the theories of Personal Consume Credit Risk. The main contents of the first part are firstly purpose of the article, secondly the theories of the Personal Consume Credit Risk of the commercial bank, thirdly research methods of the article.The main contents of second part are the actuality and reason of the Personal Credit Business of the commercial banks in China. After studying the actuality of the Personal Credit Business, the part concludes some particular reasons of the Personal Consume Credit Risk of the commercial banks in China.The third part is the case analyzing for the Personal Consume Credit Risk Management system of the commercial banks in China. These cases are the representational cases happened in the writer's job showed the disadvantage of the Personal Consume Credit Risk Management of the commercial banks in China.The main content of fourth part is how to improve the Personal Consume Credit Risk Management System of the commercial banks in China. This part suggested the six ways to improve the Personal Consume Credit Risk Management System of the commercial banks in China that firstly to establishing the warning system of the Personal Consume Credit Risk, secondly using the evaluating system of Personal Consume Credit Risk, thirdly consummating of the credit system, fourthly establishing the guarantee and insurance system of the Personal Credit Business, fifthly consummating of the inside system of the commercial banks, and sixthly consummating of the law.The fourth part is the effective route of personal consumptive credit risk management of commercial bank in our country, on the basis that three parts are analyzed and summed up and how to carry on effective management of our country commercial bank personal consumptive credit risk. This part have proposed the following suggestion:1.Set up the trade risk and grade the system. We should encourage the setting-up that the trade risk graded the system, enable its institutionalized and standardized procedure. Pay special attention to three respect work: (1)Set up rules and regulations, define goal, range, function, method, technical standard that the trade risk grades, etc., the bank appoints the specialized agency to be responsible for grading the work in trade risk; (2)The domestic and foreign data are collected regularly, grade and speak appraisal of risk and analysis with unified conduct systematically through the risk, and release the risk analysis report. (3) Set up a set of effective operation and mechanism of management to the whole bank, make the trade risk grade the result and act on the decision-making process of credit line directly, apply to each link of risk management of credit extensively at the same time, in order to give play to the risk to guide function effectively.2.Make the systematized trade credit policy. At present, a lot of domestic banks research on single static only to the trade risk, on the lack of globality and continuity, it is unable to form the matrix type risk to grade the system. And it can't just form the credit policy association of the trade. We should set up quantized trade risk and grade models, monitor the credit risks of all trades overallly continuously, not merely confirm the risk grade of every profession and trade, still tackle the trade risk variation tendency, early warning state of risk, credit remaining sum best to take, expand than credit efforts, trade risk limit, trade accrediting amount, regional difference coefficients ,etc. analyze intact measurement. On this basis, we should give full play to the risk of every overall target and differentiate function, set up melting systematizedly and dynamically, quantity, differential trade credit policy system.3.Set up the elasticity taking trade risk as basis and authorize the system. The credit of intensification authorizes the system to be to control the trade credit risk, optimize the important means to invest structure in. Should set up and authorize the system taking trade risk as main basis and differentially. As to the thing that the risk is graded for the risky trades of D grade and E grade, can consider that decrease 1020 respectively on the basis of basically authorizing amount | Accept the power of examination and approval in order to reach, strengthen credit to examine, it is low to the risk to control the goal of throwing in the scale or withdrawing from progressively, the prospect is good, grade for the low risk trades of A grade and B grade, can go up by 2010 on basically amount of authorizing separately | In order to realize expanding examining and approving to authorize, improve the goal of the business efficiency of credit; The C grade trade to the medium-sized risk seldom adjusts and basically authorizes amount.4.On the basis of grading in the trade, launch the risk limit to manage. On the foundation of grading of the trade risk, confirm the risk ceiling that the trade awards the letter, it is the important means to strengthen systemic risk management. Should set up corresponding risk limit to all trades, set up the fast reaction mechanism of the risk, once the credit vacancies to be filled of the trade breaks through the upper limit of amount, should charge the examination and approval authority of credit immediately, and through " retrieve, shift, borrow " way change and optimize the structure of customer " inside trade. The risk limit is adjusted once every year, when the trade risk enters blue early warning state, should strengthen and follow monitoring; Once red prewarning takes place, should grade the trade risk again immediately, adjust the risk limit that the trade awards the letter.