The Research On Development Of Consumer Finance Company In China

According to Management Approach to Experimental Consumer Finance Companies Issued in July2009, Consumer Finance Companies are non-bank financial institutions which do not absorb public deposits and are on the principle of small and scattered share providing consumer loans to the Individual residents within the territory of China. They mainly provide personal consumption for the purpose of financing for the residents, such as the purchase of consumer durables, and the court for personal or family travel, wedding, education, decoration and other uses of consumer issues. The Consumer Finance Companies do not apply for mortgages and car loans during the experimental period. Currently， We have four Experimental Consumer Finance Companies---Beijing Bank Consumer, Finance Consumer Company of Bank of China in Shanghai, Sichuan Jincheng Consumer Finance Company and Tianjin Gitzo Consumer Finance Company.Established consumer finance companies have enriched the types of financial institutions, and promoted innovation of financial products, while promoting the growth of personal consumption and the growth of production and sales of manufacturers and retailers. They also stimulate demand for domestic industry and change the situation of China’s GDP of over-reliance on exports and investment, and ultimately help China’s economy from investment-oriented growth to consumer-oriented growth.At present, China’s consumer finance company has just started, relative to the U.S. and Europe consumer finance companies in developed countries, China’s consumer finance companies have many areas for improvement, and they also lack of supporting from the external environment. How to promote China’s consumer finance company from the pilot to succeed, to achieve greater development in the country, and promote consumer finance companies really play the role of the growth of personal consumption is currently worth studying.With the help of previous research results, related to consumer finance theory, This Paper adopts an empirical analysis and normative analysis combining analytical methods and case study methods to discuss the development of China’s consumer finance companies and relevant issues.The beginning of the article discusses the theory of foreign consumer finance and consumer finance company’s theory, and discusses China’s dynamic research of consumer finance company, then this article introduces the definition of consumer finance and the theory of interpretation is given The third part firstly introduces the definition and history of consumer finance company of Britain and U.S. followed by the United States and the European Union, the article analysis the characteristics of the U.S. consumer finance system and consumer finance companies, the main features of consumer finance companies in European Union,And finally concludes the Inspiration or development of consumer finance company in China The fourth part of the article is the main part of the paper, this part firstly describes the definition and major features of China’s consumer finance company, followed by a detailed analysis of development status of four consumer finance companies in China. This section focuses on the business services and specialty products of four pilot consumer finance company, and analyzes the main features of each consumer finance company, such as risk controlling and marketing mode The last part analyzes some factors which restrain the development of consumer finance company,such as consumer habits, their own competitiveness, personal credit system and legal obstacles, and put forward to policy recommendations to promote the development of consumer finance company in China.