The Paradox of Mortgage-guaranteed Loan in Consumer Credit Market of China

In our country,the commercial banks face the paradox: first,the too high mortgage-guarantee wastes the consumers' limited guaranteed resources on the macro-scope;Second,this may cause the commercial banks depend on mortgage-guarantee too much;third,the financial risks which hides in the high-mortgage loan can't be neglected.On the base of this point,the paper proposes four ways: first,the personal credit-information system should be built up;Second,government should establish the personal credit-guaranteed system;third,liberalization of interest rate in the consumer credit market;finally,developing the credit card's circulation loan function.