Individual Consumer Credit: Sino-US Comparison and Experience

According to experience of USA in developing individual consumer credit business, there should be in place a sound individual credit system and corresponding legal rules and regulations that can protect the interests of borrowers and lenders; to open up a secondary market for individual consumer credit empowers consumer credit market to redevelop; government takes an active part in filling the market gap and close combination of commercial consumer credit with banking credit boosts the development of consumer credit. In China, although individual consumer credit grows rapidly, weakness still remains, which is chiefly manifested in: incomplete credit and legal system, high degree of homogeneous products, low innovation ability, singleness of individual credit issuing bodies and complicated credit handling procedures. Therefore, we should institute effective credit and legal systems, establish a secondary market for consumer credit and work hard to create a favorable policy environment for the development of consumer credit. Commercial banks should strive to innovate their consumer credit business.