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					Consumer Finance
Consumer Finance intractable rapid expansion of domestic demand 2009 年 05 月 18 日 07:56 Oriental Morning Post
Lu Ning, chief commentator Post
Shanghai, China set up four pilot cities in the consumer finance company concerned,
is already "old news." Since 12 May the Commission published
the "Consumer Finance Company Administration of Pilot" and
the public to seek public views, the domestic media has been hot. 16 May ended the
"2009 Lujiazui (25.25, -0.50, -1.94%) Financial Forum," news
release, consumer finance pilot projects in Shanghai Pudong New Area will be first.
As a result, Shanghai media reports on consumer finance company Youxian a fever,
and the overstating of the Shanghai international financial center building a bright
spot. Although the report and comment on a bustling, but the general audience is still
unclear about the information received. On the consumer finance company, interested
parties may wish to set up a few concepts are as follows:
Personal loan consumer finance company is a new channel for consumption.
Previously, domestic lending services for the consumer to provide a channel mainly
mortgage mortgage, car purchase mortgage, the three main channels pawnshops to
borrow money. If the consumer finance company does not appear the pilot twists and
turns as if on a personal loan consumer Xin Tian channel.
The initial consumer finance company loans funded by commercial banks to raise
capital, but the consumer finance company can not Xichu can only lend the principal
lending limit by size. Be limited, personal consumer loans to consumer finance
companies, also corresponding bound: The first commercial bank lending rates were
higher than lending rates, otherwise, consumer finance companies can not be
"expanded reproduction"; second, shorter repayment period, or,
lack of funds to lend, "working efficiency", consumer finance
companies will be greatly reduced their effectiveness; third mortgages, auto loans, not
included ... ...
Consumer from the consumer finance company to borrow money, businesses can not
freely choose to purchase goods or services to the consumer finance company must be
specified to limit business purchasing goods or services (such as tourism). Sort of
"not free" is not a consumer finance company imposed on the
borrower's "King terms", while an international
practice. Because only the designation (license) of the business to consumer finance
company to return some of the discount rate. In other words, consumer finance
company's operating profit also includes the designated merchant discount
With the media in Shanghai the first consumer finance companies have chosen to
resolve the pilot in Pudong, Pudong is a business that white-collar-intensive areas, the
concept of avant-garde consumers, consumer awareness of strong, stable income, a
lower repayment risk. The fact that the contrary, foreign consumer financial services
department just too high for the income, income is not stable enough, payment risk
that some consumers relatively large derivative of customized consumer financial
services. For this reason, it shall be different from the collateral for the mortgage, car
loan, pawn and the like, take unsecured borrowing. But because the borrowing
threshold is very low (only personal credit records), so the interest rate, loan amount,
repayment period and so they must set a higher threshold.
Government and community are all now to expand domestic demand brains, for that
matter, does not consider ideological emancipation, one meter from the expansion of
domestic demand, consumer finance companies that roll out quickly in the face. The
problem is, the financial regulator's concerns is the reality: First, the
regulation on consumer finance companies is difficult, once the scope of their lending
violations Xichu or over how to do, the punishment is still blank articles; Second,
scattered in various departments in fact owned by departments to all of the personal
credit information integration (also to ensure that will not be abused) is also a problem;
Third, comprehensive monitoring more difficult, the financial crisis was starting by
Department of the sub-prime, on the customer, the Just as the field of consumer
finance consumer a broader range of "subprime", good and evil,
also to the sub-prime real estate as collateral warrants, while the consumer finance
with a mortgage things are not, the consequences once the problem is self-evident.
From the last known, from consumer finance companies consumer finance services,
in terms of the financial innovations, in the present Zhineng is dotted, try, mainly
accumulated experience; the expansion of domestic demand is concerned, in a fairly
long period, it belongs to " distant water ", can not put out right
now to expand domestic demand," near the fire. "
Why the introduction of consumer finance company (2009-05-13 13:02:30)

   12 China Banking Regulatory Commission issued the "Consumer
Finance Company Administration of Pilot (draft)", to the community for
public comment, which means that consumer finance company in the recent pilot
project is expected to start.
   "From the CBRC issued the" pilot approach "can
be seen, regulators enacted in order to expand consumption in this management
approach." Central University of Finance and Banking Research Center
Renguo Tian Yong said. Tian Guo Yong believes that professional and consumer
finance company will give consumers more professional personalized consumer
products, services will be better. The China Banking Regulatory Commission to
consumer finance company business of real estate and auto loans are excluded from
home, is to support the automobile market, beyond the property market consumption.
   "The house and not everyone can afford cars, appliances and other
durable consumer goods but, decoration, marriage, travel and other consumer groups
have covered almost all. More close to the average consumer's consumer
finance company loans, will also reflect the" get rich quick "and
features. now scale more than 3 trillion yuan mortgage, consumer finance, such as to
achieve 10% of the mortgage, you can form a 300 billion yuan to 4000 billion in total
self-evident role in expanding domestic demand. "Central Finance China
Banking Research Center at the University of Renguo Tian Yong said.

   Tian Guo Yong, said consumer finance company from the financial point of view
be regarded as highly specialized financial firms. In fact, such a consumer finance
company in a foreign country more, not only financial institutions, including some
large businesses can also set up consumer finance companies.
  ?"Consumer finance companies have introduced credit card may be
combined with the bank, such as home and buy large household appliances, consumer
finance companies to apply for a loan, after review, the company hit the money
directly to bank card, this card is not necessarily credit card, debit card also may be.
"was made for the higher risk consumer finance company lending concerns,
Guo Tian Yong pointed out that compared with credit cards, credit cards is a
comprehensive personal credit, although some amount of control, but not on each
Loans can do rigorous audits, and consumer finance companies for review each loan,
line of credit is relatively flexible and may be greater than the amount of credit
granted. In addition, when the first bank to offer credit card does not seem to have
undergone rigorous review, in a sense, the consumer finance company's
credit risk but did not release credit card risks.
Consumer finance companies are bringing new ways of consumption still need time to
prove 2009 年 05 月 15 日 17:06 China Daily website
China Daily Online China news: May 12 CBRC issued the "Consumer
Finance Company Administration of Pilot (Draft)" (hereinafter referred to
as "experimental method"). Public consultation to the
community, the deadline to June 12, the CBRC will in Tianjin, Beijing, Shanghai and
Chengdu to conduct consumer finance company pilot.
When personal and family travel, education, decoration and other consumer items,
available from consumer finance company loans to the appropriate funds. And fast
approval, no collateral and flexible service, short term loans, apply for a business
client, the fastest time just half an hour.
According to "pilot approach" provisions of the relevant content,
interview with China Daily reporter stations in Tianjin Academy of Finance and Trade
Economics Institute, Dr. Gao Weikai
Reporter: At present, consumer finance company set up what effect?
Dr. Gao: First of all, can help the country's economy from
investment-oriented to consumer-led change. In the current deflation, lack of
consumer demand conditions, the consumer financial services is more difficult than
ever, financial services need to play a greater role in promoting economic
development. This requires financial institutions to focus on times of the wisdom and
ability to continue to carry out the development of innovative financial services,
provide richer medium business, strengthen research and development and provide
composite as soon as possible of financial products, tremendous potential for
development of private financial services.
From the end of 2007, China Banking Regulatory Commission on the domestic and
foreign consumer banking sectors of the economy were studied. In the financial crisis
spread to the real economy, the context of the pilot launch consumer finance company,
which is in line with China to further expand domestic demand and promote
economic growth, strategic approach, by providing more financial services to promote
the growth of consumer demand, enhance consumer stimulating effect on economic
development to achieve the economic structure from investment-oriented to
consumption-oriented and effective change.
Second, help improve our financial system. With consumer spending behavior of
China's financial and domestic demand increasingly sophisticated financial
products under the condition of the formation of a buyer's market, strong
financial consumers calling personalized, differentiated consumer financial services.
Consumer finance companies to meet consumer demand in the diversity and improve
the living standards of consumers playing an active role in promoting the financial
services in the present in mature and emerging markets have been widely used. In
developed countries, consumer finance company has a stable income for individuals
in low-end customers. Consumer Finance as a single line of credit is small, fast
approval, no collateral and flexible service, loan term and short unique advantages
received by the different consumer groups welcome. China's current
consumer loans to total loans ratio of less than 12%, and consumer credit species
largely confined to housing and automotive, consumer finance company set up for
rich types of financial institutions in China to promote financial product innovation,
improving the financial system has very important practical significance.
Reporter: consumer finance company in Tianjin economic development pilot project
in Tianjin Binhai New Area in particular, what kinds of impact?
Dr. Gao: consumer finance company in Tianjin, a pilot, on the one hand for the Binhai
New Area, industrial upgrading, as soon as possible to build a manufacturing base in
the north has created favorable conditions. Relying on Beijing, Tianjin Binhai New
Area, the service the Bohai Sea, radiation "Three North", for
Northeast Asia, northern China has gradually become a high level of modern
manufacturing base. On the other hand, the introduction of consumer finance
company, will promote the growth of personal consumption, manufacturers and
retailers to promote the production and sales volume growth, and drive the pace of
market demand for related industries. Meanwhile, the introduction of tourism
consumption, will further promote tourism and business in Tianjin industry, actively
promoting the Binhai New Area Livable ecological new city building.
Q: Why does not include housing loans and car loans?
Dr. Gao: In our current consumer credit services in the main types of financial
institutions, commercial banks, auto finance companies of the two institutions, and to
consumer durables targeting small unsecured unsecured consumer credit only
guarantee of individual commercial banks and co- handled before, but these credits
are generally small in scale, cumbersome, low degree of specialization, efficiency is
not high. Therefore, the emergence of consumer finance companies to make up for
gaps in the market, and commercial banks formed a complementary business. On the
other hand housing and car loans larger funding requirements, in operations
management and supervision in a more complex, is not yet ready to carry out
consumer finance companies.
Q: Why do not consumer finance company loans to deposit only?
Dr. Gao: For regulators, the consumer finance companies may open deposit caused by
systemic risks must be carefully considered. Today's social credit system is
still not standardized, large-scale open deposits, there is considerable local risk,
temporarily for this requirement is reasonable. But consumer finance company
funding shortfall, there are a workaround, you can order a small proportion of
consumer mortgage finance companies large commercial banks to the state block
loans as operating capital. And national financial institutions can avoid competition
for deposits, but also to mobilize the money to the operation of institutions.
Reporter: consumer finance companies and commercial banks, compared to what
traditional complementary?
Dr. Gao: different customer groups. Compared with commercial banks, consumer
finance company's target customers have a stable income in the low-end
individual customers, including young people, group, young families, need to
household appliances and other consumer goods or replacement of the family.
Loans for different purposes. Shang Ye banks mainly mortgage loans, auto loans and
credit card Yewuweizhu, Duiyujumin durable Shangpin consumption, and travel,
education and other general purpose credit personal consumption such as financial
services, still more scattered, the degree of specialization lacking.
That point of view, consumer finance company's business and commercial
bank credit card business in conflict, does not. Taken on customer requirements and
repayment time there is complementary. Credit card repayment time is 30 days, while
the financial company that created the repayment period of more than 30 days, may
be 1 year. Credit card customers generally have a threshold of income, so long as to
satisfy this condition, while customers in the central bank has good credit record to
get financing. In contrast, consumer finance company has the advantage of consumers
not to conduct mandatory monthly income, monthly income and it is ingeniously
linked with lines of credit. Consumer finance consumer finance company to meet the
long-term demand, while the major commercial banks to meet short-term consumer
credit card business financing needs.
Reporter: "Trial Measures" is to seek views of all sides, you set
up the consumer finance company what their views and suggestions?
Dr. Gao: to perfect the individual user's credit system. If the required
consumer finance companies operating unsecured, unsecured, from the financial risk
control technology, it requires adequate sound system for individual users of credit.
On the one hand, the Government unified planning and direction to the credit system.
Based on the construction in the sector, vertical and horizontal networking Fuze, our
country's credit system construction of Da Dao high starting point, the pace
fast, comprehensive, accurate, rapid and objective, really played to promote market
economy healthy and orderly development role. On the other hand, the
implementation of market operation. This aspect could learn mode of operation,
widely used in the United States based on commercial credit company's
social credit management, personal credit information companies around the United
States, chase account companies provide paid services to the community, including
credit investigation, credit rating , credit counseling, commercial debt collection, is
simply the implementation of market operation.
Background information
"Experimental methods" so-called consumer finance company,
is the Bank of China (3.61,0.00,0.00%) Regulatory Commission approved the
establishment in the PRC, and does not absorb public deposits, to small, scattered
principle To the residents of China to provide consumer loans for the purpose of
non-bank financial institutions.
"Trial Measures" set forth in the range of consumer finance
company: handling individual consumer durables loans; personal consumption loans
for general purposes; Assignment of credit assets; domestic lending; loans to domestic
financial institutions; approved the issuance of financial bonds; and consumer finance
related consulting, agency business; China Banking Regulatory Commission approval
of the other businesses.
"Trial Measures" Annex explained, the alleged personal loans
for consumer durables consumer finance company is the dealer paid to the borrower
for the purchase of agreed household appliances, electronic products and other
consumer durables (not including housing and automobile). General purpose loans for
personal consumption is the consumer finance company paid directly to the borrower
for personal and family travel, education, and decoration items such as consumer
Consumer finance company to any individual for personal consumption loans for
general purposes shall not exceed the amount previously paid to the borrower the
maximum amount of single loan. Consumer finance companies not to the first
company to apply for loans from the borrowers paid personal consumption loans for
general purposes. Consumer finance company to any individual shall not exceed the
balance of consumer loans the borrowers monthly income of 5 times.
The      "pilot       approach"        clear,    consumer      finance
company's principal domestic and foreign investors should be recognized
financial institutions and the China Banking Regulatory Commission, must have 5
years experience in the field of consumer finance, and total assets of less than 80
billion yuan Otherwise, the latest 2 consecutive profitable fiscal year, and promised
not to transfer within 3 years of the consumer finance company shares. Which should
be consistent with overseas financial institutions established a representative office in
China more than 2 years, the Chinese market is full of analysis and research
Consumer finance company's registered capital shall be paid a one-time
monetary capital and the minimum amount of 300 million yuan or the equivalent in a
freely convertible currency. Its capital adequacy ratio not less than 10%; with the
industry ratio of no higher than Borrowing Capital 100% of the total; asset loss
reserve adequacy ratio of no less than 100%.
It is reported that China Banking Regulatory Commission since 2007, at the end of
the financial sectors of foreign consumption. Earlier this year, China Banking
Regulatory Commission submitted a consumer finance company set up referrals and
experiments approach and solicit the Development and Reform Commission, Ministry
of Finance, the Ministry of Commerce and the central bank, the State Council
Legislative Affairs Office of the comments. The views of the State Council has
approved and will begin trial operations of consumer finance companies. State
Council in Beijing, Shanghai, Chengdu, Tianjin and other four cities, namely the
establishment of a consumer finance company.
Tianjin, China Daily reporter station (journalists Wang Yu Li Heng)
High interest rate consumer finance company locked the young passengers 2009 年 05 月 17 日 00:27 China Times
To be in Beijing, Tianjin, Shanghai, Chengdu, the first pilot
Boat Yang Zhonghua Beijing reporter quarter reports
Experts believe that the introduction of consumer finance companies, commercial
banks, a credit will have some impact business, but the impact from the current
situation is not great. Consumer finance companies risky loans, so interest rates will
be higher.
Under attack in the financial crisis, export trade has been in continuous decline,
stimulating domestic demand and promoting consumption to stimulate economic
recovery has become a booster.
In order to add more domestic consumer market, recipe, May 12 China Banking
Regulatory Commission announced to the public to seek the "Consumer
Finance Company Administration of Pilot" ideas, and to be in Beijing,
Tianjin, Shanghai, Chengdu, the first consumer finance company set up pilot.
According to China Banking Regulatory Commission, "Consumer Finance
Company Administration of Pilot" in the interpretation of consumer
finance company is not subject to deposits from the public, unable to obtain financing
from the banking channels offer small unsecured unsecured loans.
Consumers in the future if you want repairing furniture, decoration, wedding, travel,
the money is not enough, and there are ways a new loan - consumer finance company,
and no guarantees, no collateral.
Limited impact on stimulating consumption
It is understood that, although China's trade surplus continued to expand
over the years, but only 30% of GDP depend on exports, while 70% are relying on
domestic consumption. In the current decline in export trade, investment market
remains unclear circumstances, stimulate domestic demand, increase consumption as
the key to achieving the GDP growth.
Non-bank financial institutions, the CBRC vice chairman Ren Chenqiong Supervision
Department said consumer finance company set up such a new class of financial
institutions,    China's        economy     from      investment-oriented    to
consumption-led changing needs.
Central University of Finance and Banking Research Center Renguo Tian Yong
believes that the significance of consumer finance company is to further the depth and
breadth start from the consumer.
Domestic residents have long maintained "high savings, low
consumption" spending habits, which is obviously unfavorable to expand
domestic demand and stimulating consumption. PI Hai Chau-known financial
commentators believe that there is a need to change the low consumption of domestic
residents in the habit of high savings, so the establishment of consumer finance
companies to improve their consumption habits, more is necessary to play the role of
financial institutions.
"But the important task of stimulating domestic demand can not be
consumer finance company hopes the head." PI Hai Chau told,
"China Times" reporter, said, "China's
consumption habits are difficult to change, domestic residents do not want to
spending no money, but they are reluctant to spend money. consumer credit to the
financial companies are just some small money. for now the impact on driving
domestic consumption is still very limited. "
China Banking Regulatory Commission said that China's current consumer
credit services in the type of financial institutions rarely, only commercial banks, auto
finance companies of the two institutions, consumer loans to total loans ratio of less
than 12%, but there are very few varieties consumer credit business , mainly mortgage
loans, auto loans and credit cards mainly.
PI Hai Chau believes that the role of short-term consumer finance company limited,
but the long term, domestic consumption will change the concept of a significant
Higher interest rates expected
In developed countries, consumer financial services has been widely used, mainly for
a stable income in the low-end customers. Consumer Finance line of credit with the
single small, fast approval, no collateral and flexible service, unique advantages of
short term loans.
"The introduction of consumer finance companies, commercial banks, a
credit will have some impact business, but the impact from the current situation is not
great." Days with the financial analyst Wang Yifeng investment adviser,
told reporters that "consumer finance companies risk than commercial
banks were lending business risks, from the current situation, commercial banks can
not clear to participate in this business. "
Wang Yifeng believes that consumer finance company primarily involved in the
business may be securities companies, trust companies and other financial institutions.
"This business is unable to meet the credit to the money from the bank
customer's consumption needs, the involvement of commercial banks is not
high, but for other financial companies the opportunity." PI Hai Chau
believes that "the risk of consumer finance company loans is high, interest
will be higher. "
China Banking Regulatory Commission regulations, with more than 5 years of
experience in the field of consumer finance, total assets of not less than 80 billion
yuan, profit for two consecutive fiscal year, 3 years, qualifications do not transfer
their investment and other domestic and foreign financial institutions is consistent
with established consumer finance company conditions. Consumer finance company
requirements for minimum registered capital of 300 million yuan or the equivalent in
a freely convertible currency, as such companies do not take deposits, so regulators
will make the company's capital adequacy ratio requirement that its capital
adequacy ratio requirement is not less than 10%, the current capital adequacy ratio of
commercial banks is still the standard of 8%.
PI Hai Chau believes that consumer finance is unsecured unsecured loan, the new
company has not established a consumer credit system customers, so start making
loans is also cautious. The CBRC industry regulations, consumer finance company to
any individual shall not exceed the balance of consumer loans the borrower to 5 times
the monthly income. Separate data showed U.S. consumer finance one-quarter bad
debts reached 3.9 billion U.S. dollars.
German Court, a senior economist at Galaxy Securities, said: "The
professional operation of the consumer finance business, stimulate consumption
played a role. However, unsecured consumer finance loans unsecured high risk, needs
a risk control system, professional After the operation a number of risk control is
more favorable. "
Target group is young customers
And banks introduced credit cards, unsecured loans and other services, consumer
finance company's target groups must be younger customers.
It is understood that the major consumer finance company's business,
including personal loans and general purpose consumer durable goods for personal
consumption loans. Consumer durable goods, mainly refers to the agreement with the
distributor of household appliances, consumer electronic products. General purpose
loans for personal consumption is the consumer directly to the consumer finance
company borrowed for personal and family travel, education, and decoration items
such as consumer loans. Consumer finance companies in the pilot phase of the
operation did not involve real estate loans and car loans high risk product.
"Consumer finance company loan interest is not to be high?" A
secondary school teacher Miss Song on the new loan types have expressed their own
doubts, "If I want enough money to buy furniture or appliances, then the
general credit card installments models can be used. "
So the advantage of consumer finance company where?
Chen Qiong, said the establishment of professional and consumer finance companies,
commercial banks can not benefit individual customers a new choice of services to
meet the different needs of different levels of consumer groups.
Guo Tian Yong is that since the consumer finance company loans are aimed at
specific consumption of each audit, and credit card is a comprehensive personal credit
review, so consumer finance loans may be more stringent auditing and risk but no
credit card consumption risks.
"Consumer finance with credit card financing are similar, for the
promotion of domestic consumption over a channel." Said Wu Yonggang,
an analyst at Guotai Junan bank, "but the short term will not be too
significant boost to consumption, the long term is good. "
Credit card consumer finance PK
● Interest: The interest on consumer finance loans than commercial banks may be
spending a loan-to-high, Li Shuai priced according to the risk of the borrower,
Budechaoguo year bank loan interest rate of 4 times, from loans Kaishi need Zhifu
interest. Credit card spending up to 56 days interest free period credit card
installments need to charge a certain fee.
● repayment period: consumer finance loan repayment period may be for one year.
Credit card repayment time is 30 days, shopping malls hire up to 36 months.
● credit lines: consumer finance company to any individual shall not exceed the
balance of consumer loans to borrowers monthly income of five times the monthly
income of 5,000 yuan loans to customers at most only 25,000 yuan, the loan amount
shall not exceed the previous release of the single borrower The maximum loan
amount. Commercial bank loans for credit card line of credit from several thousand to
hundreds of thousands of tens of thousands range, and some banks introduced
Platinum Card, Diamond Card, credit card limit up to several million.
● Loan Audit: initial, consumer finance companies for customers to borrow every
consumer review. If the customer in the consumer loan company to maintain a good
credit history, lenders can start planning funds to the customer, the customer needs in
accordance with their own consumption. Credit cards are issued when the assessment
of applicants in the information to identify a comprehensive line of credit, does not
require customers each spending review. (Quarter boat)

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