The Research Of Consumption Credit Development In China

In 2007, China opened RMB operation to the foreign capital banks, which means the foreign capital banks as well as the Chinese banks can develop financial operation to the personal consumption. Providing personal consumption credit is a long-running excellent operation of the foreign capital banks. It has constituted the new increasing point of operation and profit of business banks, helped to improve the asset structure and asset quality of the banks, and it will bring along the bank cards and savings operation. Large scale foreign capital banks pay much attention to the development of personal consumption credit and they have strong competition power. However, consumption credit is a rising business in China. In order to further study the development of consumption credit in our country, chapter one of this thesis gives a brief explanation of consumption credit theories. It includes the meaning of consumption credit, its development and function etc. Furthermore, in discussing the function of the consumption credit, it mainly aims at its consumption, currency policy, economic increasing, and the activities of modern commercial banks.As the consumption credit in China is in the stage of exploring and discussing, it will experience frustration in the process of its development. Chapter two discusses the existing problems and risks of the consumption credit in China. At present, the variety of consumption credit in our country is simplex; the commercial banks lack of experience in doing consumption credit business; they go short of skilled experts and talented persons who are acquainted with it; the numbers of managing and operating staff are not enough; measures to avoid and keep away its risks are not sufficient; there lacks in relevant insurance policy to go match with consumption credit. Although, nowadays there exists so many problems opening consumption credit business in China, it has promising space. Chapter three analyzes the present situation of Chinese citizens and the consumption needs, which consequently make us clearly know the expansive prospect of our commercial banks' opening consumption credit. The western advanced countries have opened this operation in the last century and their developed degree and perfect level supply China with imaginary space. Therefore, chapter four takes America, the most developed country in consumption credit, for example to help our country to enhance the construction of personal credit information network, the relevant law systems and assurance system of consumption credit etc.Finally, the thesis focuses on analyzing the advantages and disadvantages of commercial banks' opening consumption credit and discussing its development and perfection in China. According to our present situation, the paper suggests that our commercial banks should take relevant measures to avoid the risks and the governments should give support in the operation of commercial banks' consumption credit.