The Construction Of The Personal Credit System To Prevent Credit Risks

In recent years, more and more people pay attention to the developing systemproblem. Credit reporting system is one of the most important system arrangements,and credit reporting system becomes one indispensable part of one country's financialsystem. Now, most developed countries have set up a more comparatively perfectmanagement of social credit, and have a mature credit reporting system, however,developing countries were week at this.The foundation of the market economy is credit system;in some aspects, advanced creditmeans advanced market economy. Individual credit is the basis of the social credit. Theindividual credit reporting system enable the financial sector to better serve the needsof the real economy by facilitating both better allocation of credit, and improvedavailability of credit based on accurate, comprehensive and timely information. Theirimprovement is a priority task when transforming economies and developing bankingsystems. However, the development of modern individual credit reporting systemsmay require modifications to the legal framework, as well as improvements in theinstitutional capacity of the central bank, commercial banks, and other entities that areproviders and users of credit. The individual credit reporting system makes use ofmodern telecommunication technology and computer network technology for thepurpose of setting up a concentration-distribution database for financial institutions atvarious levels throughout the country to register and inquire about the creditinformation of the person on the Internet. On the other hand, the construction of theindividual credit reporting system focuses on the provision of the credit informationservice to the commercial banks to guard against and rule out the underlying creditrisks as well as provides the central banks with information needed in the research offinancial supervision and monetary policy. Good individual credit reporting system isan effective guarantee against financial risks. In China, the lagging of individualcredit reporting system became an obstacle of economy. Recently, the states attachmuch attention to credit. It is urgent to improve individual reporting system for bothdeveloping credit economy and constructing national credit system.This thesis is divided into four substantive sections. In the article, author uses themethod of games theory. From once game to repeated game, the article theoreticallyrevealed the fundamental factors of credit risk coming from the asymmetricinformation and the problems of repeated game. Then, the article indicates thatindividual credit reporting system is the way to resolve the poor credit situation.Adopting economical and comparative methods, author studies how to makeindividual credit reporting system more mature and the credit reporting law in thefollowing chapters.With the analysis of current situation of individual credit reporting system inChina, the problem in this field, and the main reasons to restrict the development ofindividual credit reporting system. Author suggested some way to better the situationof individual credit reporting system in our country so as to promote the developmentof economy.