Comparative Study Of Chinese And Foreign Consumer Credit Promoting Legal Mechanisms In Rural Areas

Along with thousands of years of the Chinese agricultural civilization, nowadaysChinese agricultural problem which has a deep sense of history still exists. Agriculturaldevelopment, Progress in rural areas and Farmers’ prosperity are China’s most importantissues in the21st century, which are inseparable from the development of the rural economy.Consumption, as one of the Troikas stimulating economic growth, is even more important,especially in the nowadays poor situation of the world economy. Finance is the core ofmodern economy. In the process of expanding domestic demand in our country, the ruralconsumer credit has become an urgent need for upgrading the consumption structure.Consequently, consumer demand expansion through developing rural consumer credit is notonly an important way to overcome the economic difficulties in the short term, but animportant force to promote China’s economic growth in the long term as well.The development of the rural consumer credit can not do without a good rural financialsystem. And the improvement of the rural financial system is also inseparable from theprotection of the rural financial legal system. Nowadays rural financial legal system isimperfect. On one hand, legal systems including the existing rural consumer credit personalCredit Reporting legal system, Credit guarantees legal system, Business competition legalsystem and Tax legal system, is unable to motivate credit institutions to promote ruralconsumer credit. On the other hand, other legal systems, including credit financial institutionsaccess legal system, Credit consumer rights protection legal system, Product innovation legalsystem and financial institutions regulatory legal system, is also unable to form an effectiverestraint for credit institutions to promote rural consumer credit. Therefore, from theperspective of Economic Law State Intervention theory, it is of great urgency to buildincentive and constraint financial institutions legal mechanisms to promote rural consumercredit.There are four parts in addition to the Introduction and Conclusion in this article.The first part is about related theories of rural consumer credit promoting legal system,which presents the economic theory and economic law theory of rural consumer credit. First,this part combs the significance of three major rural financial theories for promoting ruralconsumer credit, naming the theory of financial repression, financial deepening theory andfinancial functions theory. This part also presents systems related to credit institutions from the incentive and constraint perspectives. Second, this part mainly applies the theory ofexternalities in the economic law theory to analyze the rural consumer credit and points that agood rural consumer credit legal system could have incentive and constraint effect to creditinstitutions.The second part is about legal systems comparison of motivating credit institutions topromote rural consumer credit between China and foreign countries. This part compares anduses as references from four motivating credit institutions legal systems, including personalCredit Reporting legal system, Financial institutions business competition legal system, Ruralcredit guarantees legal system and Financial and tax supporting agriculture legal system.The third part is about legal systems comparison of restraining credit institutions topromote rural consumer credit between China and foreign countries. This part compares anduses as references from four restraining credit institutions legal systems, including Financialinstitutions access legal system, Consumer rights protection legal system, Rural consumercredit product innovation legal system and Rural financial supervision legal system.The forth part is about the legal mechanism improvement of motivating and restrainingcredit institutions to promote rural consumer credit. In the basis of the comparisons in thesecond and third part, this part submits specific recommendations to improve motivating andrestraining credit institutions to promote rural consumer credit legal system.