Consumer Finance Companies Development Research In Our Country

In the year of2009, CBRC promulgated The Experimental Regulations of ConsumerFinance Company, then four consumer finance company were set up in2010respectively,which were Bank of Beuing Consumer Finance Company, Boc Consumer FinanceCompany, Jincheng Consumer Finance Company, and Home Credit Consumer FinanceCompany. China’s consumer finance company is still in its infancy, the scale and mass baseof which are very small. However, the development of China’ consumer finance companyhas its urgency, because it plays a positive role in providing more channels of individualconsumer loan financing and improve our financial organization system. At the mean time,the establishment of consumer finance company can meet the different needs of differentgroups, improving the growth of personal consumption, and thus promoting the economictransition from being investment dominant to consumption dominant, and change thesituation of excessively dependence on exports and fixed assets investment of GDP.This paper first analyzes the development situation of consumer finance in China andits important role in economic development. And then analyzes the necessity andfeasibility of the establishment of consumer finance company, and its developmentsituation and existing problems. The next part is the development experience of Americanconsumer finance company and the successful cases of its two big consumer financecompany, which will be of assistance to the development of consumer finance company inChina. Because China’s consumer finance company has just been set up, their operatingcondition and development direction will be improved according to the development ofmarket. Therefore, this paper emphasizes on the systems and market environment ofconsumer finance company and offers some advices according to the developmentexperiences of American consumer finance company.