The Economics Of The Personal Credit System

In the 1930s, the United States has begun building a personal credit system. Now, it has developed into the most perfect personal credit system of the world. Compared with the developed countries, Chinese personal credit system has a late start. China has not yet established a comprehensive personal credit system, and Chinese current personal credit system is plagued with serious efficiency problems. By analyzing the target of Chinese personal credit system and efficiency loss of our current institutional under the existing arrangements, we are now clearly that the efficiency option of Chinese personal credit system is to maximize the welfare, so, people can maximize their benefits in the face of a series of restrictive conditions.This paper is divided into five parts. The first part is the introduction, which stays the deletion status of the personal credit system, then asks questions; introduces a dynamic research at home and abroad, points out the perspective and research methods of the study. Part II provides the analytical framework entire article, including the economics meanings of the credit and the personal credit system, an overview analysis of the system and its main stakeholders, as well as the support of the economic theory. The third part is about the development of personal credit system in domestic and international. It includes the experience of the developed countries, as well as our personal credit system's development status in recent years. Part IV focuses on China's personal credit system needs. Although, our personal credit system's construction has been made some progress, in terms of efficiency and welfare serious problem which needs to supply the new system. Part V gives the countermeasures of perfecting China's personal credit system. First of all, gives supply objective of the new system, to make the Right Main would maximize their benefits in facing a series of constraints on the basis of market allocation resources. And then gives the suggestion from the aspects of efficiency and welfare. Finally, we should strengthen the supporting systems construction and provide a good social environment for the personal credit system.