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Consumer Credit and Credit

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									Consumer Credit and Credit
Consumer Credit and Credit
?
Invited to participate in trade credit in China's "personal loan
industry investigation" and the "personal loan product
evaluation", (http://www.loanchina.com/activity/loan2009/index.html), as
non-professionals to participate in reviews related loan products and views. Although
not trade myself, but work experience in economics and risk management,
professional background, especially the big mouth of habit, or something free to give
lessons. Of course, people laughed at the layman, I hope to get professional
understanding.
?
Personal loan products of financial institutions as strong a party is bound by various
means to protect their own interests, which naturally can not do without the credit risk
management. Throughout the trade credit banks listed in China's credit
products, except outside the micro-credit (credit cards and the like), the biggest
feature is the emphasis on the protection of credit collateral. Indeed, the collateral
relative to people, the relatively simple and easy to lock, it also ignored the Chinese
social environment related to personal integrity. But the real responsibility for
repayment of loans and assume that people rather than things, too much emphasis on
the value of the likely risk of an outbreak in the system is difficult to avoid. Need to
pay particular attention to the banking industry: hype does not create real value! ! U.S.
subprime mortgage crisis is an example, when we are dedicated to continually
"appreciation" of the real estate subprime lenders, credit is
ignored, the system quietly comes risk, the real estate market downturn caused by a
large number of financial bad! ! By the end of 2008 China's banking sector
in rail expansion stone chattel mortgage loans, is facing the same problem, but less
than the amount of real estate so much. In fact, stock index futures, margin trading
will involve how to avoid systemic risk issues, substantial increase or decrease in a
row under, how to ensure that the interests of parties to the transaction really occurred
the Business in the year 11 or board to do?
?
If China's real estate loans in strict accordance with the guidance of the
central bank and China Banking Regulatory Commission, should be said that risk can
be controlled at a relatively low level. But specific to the operators of local financial
institutions, burdened with operational indicators and peer pressure of competition,
very good at creative modification operation. For relatively rigid collateral requested
to be the last target, ignoring the study of the Dai Kuanren almost Pi Pubianjieshou,
many links all OK Tongguo false achieved, Zai Yenei already Qian Guize. Though
complicated, but also the means for evaluation. How to control and tap the core of
consumer credit - the risk of borrowers and potential of personal loan products should
be used as the primary consideration the future upgrades. Three people who played
the game know that every variety of general ability are corresponding to different
values, as a player with intelligence can never be high, low force generals singled
with Zhang Fei and his ilk. But in real life, such people do the wrong place
everywhere, that is, the relative lack of scientific evaluation system. For the bank
credit products, the establishment of just such a system is necessary, especially in the
current proliferation of mobile asset prices push up the stage, the risk of a direct
control of financial institutions determine their own safety.
?
Lack of objective evaluation of the individual in Chinese society is a common
phenomenon, often deeply rooted in our minds the concept or unit. In real economic
activity, units of limited liability than unlimited liability of the individual far, this has
been my involvement in so many cases been confirmed from the implementation.
Foreign personal rating is the most common tax and spending records (the so-called
sub-prime mortgage credit quality is available to persons of non-credit), bank fraud
proof of income commonly used is low cost, for that matter forged or false that acts
not punishable. Many professional real estate speculators off to avoid personal risk, to
use a few thousand dollars to hire the head (mostly in rural areas), Counterfeit proof
of income. Sellers can cash in home prices, home prices shot ass leave. If house prices
fell less than the down payment, banks face the loss of credit assets (that is the
product of such systemic risks, banks selling mortgage property caused by rapid price
decline), and the remaining individuals are "want life, not to
"The group will be very difficult for debt collection. Proposed large
mortgage bank audit, the audit proof of income, it should also declare the tax
authorities for the transfer of records (such as the annual income of 120,000 yuan or
more declarations, almost no over-reporting). In addition, financial institutions should
also be conscious of the information through the collection, and gradually improve the
situation of client groups and internal classification of customers to design more
appropriate for different credit products. By the industries in which customers, work
unit, income, consumption records, asset classification status rating, and even provide
personal unsecured credit services, allowing good personal credit to provide credit
guarantees for others.
?
In fact, a loan product, I also want to see the business class of loans, especially for the
rural market, a credit, of course, this is a luxury only the Agricultural Bank to pay a
price too high. From this point of view, we may need to reflect on the future economic
development of rural individuals, need to move again to a large group. If the form is a
large farm, and many problems can be solved, agricultural cultivators of pricing and
bargaining power also greatly increased, the majority of farmers are able to enjoy the
fruits of rapid economic development.
?
Little superficial knowledge, on the right when the activities involved in opening
China's trade credit article it.
?
The other, it is reported that China has achieved macro-tax level, or 10 trillion,
accounting for more than 30% of GDP (taxes, non-tax revenue and an unknown
amount of land transfer estimate). European and American countries compared the
level of taxes and benefits, there is clearly a large gap. The beginning of the financial
tsunami struck, I had already pointed out that this is a reform to take the opportunity
not only to improve the economic structure has been deformed, but also by
streamlining the organization and government spending (especially a blatant waste of
public money spending public funds) set up good government image. But it did not
leap forward to maintain the peacefulness of credit situation, spending in the economy
did not see any effect. The release level of China's macro tax burden, do
not want to be harmonious out afterwards, making departments more should reflect on
how the taxes into the well-being of all citizens, not some profligate purse.
?
The other, stock oversold bounce in banking stocks led ascribed, not surprisingly after
the fall stocks rose less or more, broader market IPO greater financial pressure on the
market. China has entered the closing stages of small cap stocks, investors need
special care. New Year's to maintain "correction"
point of view, pay close attention to the impact of upcoming economic data.
?
Cheng Cheng
January 19, 2010

								
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