What is the current state of consumer credit in China? What is the impact on China's economic life?

Chinese credit consumption began in the 1950s, and then credit consumption was once canceled. Banks to housing as a breakthrough in the credit consumption started in the 80s, but at that time the shortage of economic dominance, the market economy is not yet developed, credit consumption does not have the full development of the economic foundation and market conditions, so the credit consumption of a single variety of narrow range, small scale, only in the embryonic and exploratory stage.　　Since the 1990s, China's rapid economic development, the living standards of residents continue to improve, in housing, automobiles and other areas of relatively strong demand. At the same time, with the formation of the buyer's market, the lack of consumer demand has become a major constraint on economic growth, the government has taken a variety of measures to expand domestic demand, credit consumption as an effective means of stimulating consumer demand has been emphasized and popularized, and policies, laws and regulations aimed at encouraging personal credit consumption have been introduced one after another. By the end of 2003, commercial banks nationwide had a balance of RMB 1,573.6 billion yuan in consumer loans, a 90-fold increase over the RMB 17.2 billion yuan at the end of 1997, of which RMB 1,178 billion yuan was in personal housing loans, and the proportion of credit consumption in all loans had risen from less than 0.13 per cent to 10 per cent.　　In terms of institutions providing credit consumption, all domestic commercial banks and credit cooperatives have started consumer credit business to varying degrees, while the four state-owned commercial banks, namely, the Industrial and Commercial Bank of China (ICBC), the Agricultural Bank of China (ABC), the Chinese Commercial Bank of China (CBC) and the Construction Bank of China (CCB), are the mainstay of the consumer credit market, with the balance of their consumer credits accounting for 88% of the total amount of consumer credits offered by financial institutions. In terms of the varieties of consumer credit, the development in recent years has resulted in the formation of a system of more than a dozen categories and hundreds of varieties of consumer credit, including personal housing and housing renovation, automobile consumption and credit card consumption, large consumer durables, education and education assistance, travel and medical loans, comprehensive personal consumption and short-term personal credit loans and revolving credit line loans, etc. As can be seen from the data provided above, the consumer credit market is dominated by industrial, agricultural, Chinese and construction state-owned commercial banks.　　From the data provided above, it can be seen that among the consumer credit issued by banks, personal housing loans occupy an overwhelming advantage. This shows that China's credit consumption business varieties have a lot of room for innovation, some very promising credit consumption varieties in China is basically still blank. In addition, some credit consumption varieties have been carried out in China, but the depth of development is still far from enough. It can be expected that after the establishment of the social credit system, credit card-based consumer credit will usher in a phase of rapid development.　　From the current practice of financial institutions, the development of consumer credit in China should make significant progress in the following areas: (a) focus on the development of personal housing and automobile credit consumption Personal housing loans in China's current development of credit consumption occupies an absolute proportion of the future period, personal housing loans are still the focus of consumer credit development should be on the basis of effectively reducing the risk of housing loans, expanding the scope and proportion of housing loans, focusing on the development of the credit system. On the basis of effectively reducing the risk of housing loans, the scope and proportion of housing loans should be expanded, with emphasis on the development of mid-range housing loans. In addition, as the popularity of automobiles increases, the demand for automobile consumer loans will increase significantly, which will become a major growth point for consumer credit.　　(ii) Vigorously develop credit card business and credit consumption of personal consumer durables The proportion of credit card business in the United States is second only to that of housing credit. China's commercial banks should seize the favorable opportunity to vigorously develop credit card business after the establishment of the social credit system, encouraging consumers to consume first and pay back later, and making credit cards into real credit cards. In addition, they should also vigorously promote commercial sales outlets and consumer outlets for credit card payments. According to statistics, our consumer durables loans account for a small proportion of our credit consumption business, and the market potential is huge. For this reason, commercial banks should actively cooperate with merchants to carry out various forms of loans for consumer durables.　　(iii) Vigorously develop credit consumption for student aid and tourism At present, the proportion of student loans in China is still relatively small, and commercial banks should take various forms to vigorously promote them. Relatively speaking, student loans are essentially a way for consumers to finance their present education with their future income, and their loan recipients are generally of high quality, so if they can be reasonably guided, they should be able to become a good credit variety. In addition, with the growing importance of the holiday economy and the increasing expenditures of residents on tourism, commercial banks and related financial institutions and tourism companies should respond positively to the relevant national policies and vigorously promote tourism credit consumption within the scope permitted by national laws.　　(d) Draw on the advanced business methods of credit consumption in the U.S. Financial institutions should actively cooperate with relevant organizations, combine with the actual situation in China, vigorously develop new varieties of credit consumption, explore the feasible issuance modes and risk control modes of these varieties of credit consumption in China and actively improve and implement them in order to improve China's credit consumption system as soon as possible. For example, different loan varieties can be developed for different consumer groups, operating vehicle loans can be provided for individual businessmen and transportation operators, and small family business loans can be provided for urban and rural families with entrepreneurial consciousness. At the same time, for different credit consumption varieties and loan objects, a variety of choices can be provided for consumers in terms of interest rate term and repayment methods.　　The development of consumer credit is promising, but the road to development is still very long, and its process is constrained by many factors such as the construction of credit system and residents' consumption concepts. In order to promote the healthy and rapid development of consumer credit, we should do a good job in the following aspects of protection: (a) Strengthen publicity, change the traditional concept of consumption in China's market economy has stepped into the buyer's market, the promotion of moderate indebtedness consumption is very important. Therefore, it is necessary to increase publicity efforts to guide residents to change the consumption concept of debt-free, to realize the shift from debt-free consumption to moderate debt consumption, and gradually improve the level of consumer credit of the residents. China's residents credit consciousness is still relatively weak, financial credit knowledge is still relatively poor, so enhance the consumer's credit concept, credit knowledge and financial knowledge, is the development of consumer credit and expand domestic demand is one of the important conditions.　　In addition, for banks and other financial institutions, it is also necessary to gradually increase the proportion of individual credit business, change the concept of focusing on industrial and commercial credit but not on consumer credit, fully recognize the role of consumer credit in the development of financial credit and the development of the social economy, and make greater efforts to publicize the policy orientation of the development of consumer credit, market orientation and its operational methods, and strengthen business consulting services.　　(ii) Adjust the income distribution policy and raise the real income level of the residents The level of real income of the residents directly affects the degree of development of consumer credit. Therefore, the State should take measures to increase income in its income policy to ensure that the income of urban and rural residents has a reasonable growth rate; in its distribution policy, it should further narrow the income gap and accelerate the establishment and improvement of the social security system, so as to change the income and consumption expectations of the residents and stimulate the reasonable growth of consumption.　　(iii) Establish a credit risk prevention system for consumer credit The level of credit risk prevention directly affects the success or failure of consumer credit. At present, the development of personal consumer credit is not fast, the main problem is not in the bank, but in the external environment is not perfect, not supporting. However, banks in the development of consumer credit, should be ahead of the awareness, make full use of existing conditions, through financial means to promote the healthy development of personal consumption.　　1, as soon as possible to build a personal credit system. In addition to the establishment of the citizens' basic information database, it should also speed up the integration of the citizens' basic information with the banks' credit information, establish and promote as soon as possible the personal credit risk scoring model and the computerized approval system of consumer credit suitable for China's national conditions, set up regional and national personal credit investigation and assessment firms or personal credit investigation firms, carry out continuous investigation services for the income status of the investigated persons, etc., and establish the borrower's credit data model of the borrowers, accumulate information and analyze it regularly, and at the same time connect banks with other departments such as the government to explore the way of information **** enjoyment. In view of the current situation in China, firstly, it is necessary to introduce relevant laws as soon as possible to clarify its service targets, market access and exit norms, business scope, compensation mechanism, etc.; secondly, it is necessary to cultivate a group of high-quality practitioners with professional knowledge of personal credit assessment to promote the maturity and authority of assessment; thirdly, it is necessary to formulate unified assessment standards to enhance the comparability of the results of various assessments and to prevent unfair competition among assessment organizations; fourthly, it is necessary to establish an industry-wide credit appraisal system to prevent unfair competition; fourthly, it is necessary to establish an industry-wide credit appraisal system. Thirdly, unified assessment standards should be formulated to enhance the comparability of assessment results and prevent unfair competition among assessment organizations; fourthly, industry associations should be established to strengthen industry self-discipline and self-construction of assessment.　　2. Improve the guarantee system. We should learn from the experience of developed countries to gradually improve the guarantee system for individual consumer credit and reduce the risk of consumer credit. First of all, the guarantee law should be improved to increase the provisions on consumer credit; secondly, a standardized housing secondary market should be cultivated so that mortgaged properties can be easily liquidated; thirdly, banks should work closely with insurance companies to reduce risks by combining consumer credit with life insurance, property insurance, and performance guarantee insurance; and lastly, studies can be conducted on the formation of a consumer credit guarantee company by the government to provide guarantees for consumer credit, especially for long-term consumer credit. Finally, the government can be asked to set up a consumer credit guarantee company to provide guarantees for consumer credit, especially long-term consumer credit.　　(iv) Improvement of the social security system At present, the socialization of the social security system is far from adequate to completely relieve people's worries, so it is very urgent to establish a social security system that combines commercial and mandatory coordination. Therefore, the establishment and improvement of a social security system covering all urban residents should be taken as a very urgent task to grasp, and the construction of a social security system for rural areas should also be carried out in a focused and step-by-step manner.　　(v) Strengthen the training of professionals Practitioners in the consumer credit business not only need to be familiar with modern professional knowledge, but must also have knowledge of bank savings, settlement, financing, financial management and the ability to conduct market research and interpersonal communication, i.e., to become all-rounded and comprehensive talents. Since consumer credit in China has just started, business personnel come from various departments, and the quality of personnel is uneven and low overall. Therefore, it is particularly urgent to strengthen the training of practitioners.