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Talk about our personal consumer credit information asymmetry problem

Author: RenZhuang From: www.yourpaper.net Posted: 2007-11-20 15:11:43 Read:
The individual consumer credit a specified consumer use RMB loans issued by banks to individual customers. In recent years, the rapid development of personal consumer credit market, but also exposed many problems in the development process, a direct impact on the healthy development of the individual consumer credit market. The reason, I believe that the lack of personal credit key factor is the impact of the development of personal consumer credit market, and produce the main reason for the lack of personal credit information asymmetry. This paper attempts to use the theory of asymmetric information, personal consumer credit market analysis, and proposed the corresponding countermeasures.



First, the lack of personal credit affect the key factors of the development of personal consumer credit market



In recent years, with the promotion of personal consumer credit market, people gradually accept this new form of consumption, traditional consumer attitudes of the people "savings - Shopping - savings" are already in the "loan - Shopping - savings debt, "the concept of change, that in the economically developed regions and cities of the residents who was especially evident. Therefore, although the concept of personal consumption is still affecting the development of personal consumer credit market, but no longer is a major constraint.



From the current start-up of the individual consumer credit situation, due to the small risk, high-income, banks compete actively expand this business. But with the expansion of the business, the loan risk is gradually revealed. According to the relevant provisions of the commercial banks, non-performing loans of the individual consumer credit than the average should be controlled within 5 бы According to the data, personal consumption loan repayment rate is generally 70% to 80%, and There are trends to continue to decline. It should be said, the the loan risk increase is mainly due to hinder the development of personal consumer credit market.



Theorists generally believe that personal consumption loans increased risk In addition to the weak sense of personal credit, the key reason or because our main personal credit history credit management system has not yet been established. It should be said that this view correct, but not entirely accurate. The market economy is an economy of credit, market transactions without a credit basis. Credit from the personal point of view, which includes the two parts of the moral credit and asset credit. Moral credit refers to the quality of being honest and trustworthy, and it's good or bad credit history, often through market transactions to reflect. Assets including savings bonds, stocks, real estate and other assets owned by individuals with credit rating credit, how much of its level of assets owned by the individual to decide, more assets, the better the credit rating. The above view is the moral credit as the subject of personal credit, while ignoring the existence of the personal assets of credit, this view is not entirely accurate. I believe that personal credit history is the main moral of the lack of credit management system, as well as personal assets, asset credit evaluation system, both the lack of credit, a direct impact on the development of personal consumer credit market.



Information asymmetry is the main reason for the lack of credit personal consumer credit market



Personal consumer credit risk arises due to the lack of credit, credit problems emerged as a result of information asymmetry. According to Western information microeconomics theory, information asymmetry is a party to the transaction in the market has more information than the other. In concrete work, according to the time of asymmetric information prior information asymmetry will cause adverse selection problem occurred after the information asymmetry will cause the problem of moral hazard. In accordance with one of the founders of the Western information microeconomics theory, the 2001 Nobel laureate in economics --- Stiglitz model analysis of the credit market, borrowers in the credit markets have high-risk and low-risk points, but this information is only borrower knows, the bank does not know. In this case, the bank had to raise interest rates in order to guard against the risk. When interest rates rise, the low-risk borrowers are reluctant to borrow and high-risk borrowers willing to pay higher interest rates, and therefore still active borrowers, low-risk borrowers gradually withdraw from the market, while the high-risk borrowers flooding the credit markets, adverse selection phenomenon. When the two sides after the contract is signed, the bank on the behavior of borrowers unable to supervise, if the borrower can not abide by the contract, it will create moral hazard problems.



Between banks and borrowers in personal consumer credit market, ever-present problem of information asymmetry, information asymmetry, adverse selection problems and moral hazard phenomenon is widespread in the actual work. Under normal circumstances, when you apply for a loan to the bank, the borrower know whether repayment ability, but is bound to provide more information to their advantage, and as little as possible to mention or simply not to mention those against themselves or not uncertainties. Individuals can not or do not want to borrow from banks, resulting in adverse selection beforehand banks had to raise interest rates or take the form of mortgage-backed prevent risks, thus increasing the customer's transaction costs, so many good credit but can not provide collateral phenomenon. The same time, due to banks facing thousands of families, it is not possible to effectively supervise the behavior of all borrowers, not to comply with the credit borrowers may not be time to repay the loan and interest will be generated after the moral hazard problem. Personal consumer credit market, the phenomenon of lack of credit and information asymmetry is closely linked. Information asymmetry is generated phenomenon of lack of credit, the existence of information asymmetry will inevitably lead to the phenomenon of lack of credit, and the extent of the lack of credit directly with the degree of information asymmetry in the market is closely related. The credit can be as overcome information asymmetry informal contractual arrangements, an important role is to reduce transaction costs, reducing the average social transaction costs, more fair and reasonable and profitable market transactions, and promote the healthy and orderly development of the market; The lack of credit will increase transaction costs, the transactions could have occurred can not be maintained. Therefore, if you can not effectively solve the problem of information asymmetry, the phenomenon of lack of credit will not be able to avoid.

personal consumer credit market to solve the problem of information asymmetry measures and countermeasures



Western information microeconomics theory to solve the problem of information asymmetry incentives need to be established and signaling mechanisms. Simply said adverse selection phenomenon, when the contract is signed, the client does not fully know the agent's private information, the transmission of information through a signaling mechanism to solve the need to design a mechanism to allow the agent has private information to the the information principal, former or the latter to induce the disclosure of personal information, so as to achieve a best contractual arrangements. After signing the contract in the event of a problem of moral hazard, the principal can not fully grasp the information of the agent, when a client needs to design an optimal incentive mechanism to induce the agent to choose the action desired by the principal. In short, we should make full use of the personal credit information, personal consumer credit market information asymmetry through the establishment and improvement of signal transduction mechanisms and incentives to solve the problem. Establish a signaling mechanism, it is necessary to take advantage of the personal consumer credit history information to obtain loans through its own good credit, to address the adverse selection problem beforehand; effective use of the personal assets of credit information in establishing incentives to improve mortgage warranty procedures, to their own personal property collateral, in order to prevent the occurrence of ex post moral hazard problem. I believe that to solve the problem of information asymmetry should be the following aspects:



First, it is necessary to strengthen the construction of the concept of social credit and credit and legal system. First, the government should strengthen the administrative functions, strengthening citizens' credit awareness, honesty and trustworthiness as the basis of the socialist moral construction engineering task, allow people to truly appreciate the personal credit is "identity card", Economic Pass, play an increasingly important role in the future of life, should be maintained, in order to form a culture of honesty, integrity as the most important "credit. The second is to strengthen the social credit and legal system, to establish the perfect specification Credit information resources relevant laws and regulations, and to use legal means to regulate personal credit behavior. Third, the financial sector should strengthen cooperation with the law enforcement agencies of the judiciary, economic management, the establishment of a social credit environment joint meeting system, increase of non-performing debt obligation legal constraints.



Second, it is necessary to adhere to the individual consumer credit approval criteria. The banks should adhere to the loan terms, improve lending procedures and contracts, to simplify the loan process, adhere to the principle of "first mortgage guarantees, after Xinyongfangkuan work. In practical work, personal consumption loans can be divided into security, guarantee, credit three. Secured by mortgage loans generally require customers to own property as collateral or guarantees, as a guarantee that the personal assets of credit. Credit loans personal credit history alone, that personal moral credit as a guarantee. In order to prevent to prior adverse selection problem, to ensure the security of the loans, generally before take Xinyongfangkuan form of a sound credit system in the city. However, in order to prevent the occurrence of ex post moral hazard problem, the bank must understand the customer's credit history, loans to good credit customers only.
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