Traditional consumer finance is a modern financial service mode that provides consumer loans to consumers at all levels. Whether from the perspective of financial product innovation or expanding domestic demand, consumer finance pilot has positive significance.

under the current macroeconomic situation in China, it is necessary to introduce relevant management measures in a timely manner to meet the trend and needs of the objective economic situation. From the perspective of financial product innovation, personal credit business is an area that traditional banks cannot fully benefit from. Establishing a professional personal consumption financial system can better serve individual residents.

Extended information:

Source of consumer finance:

It comes from the Measures for the Pilot Management of Consumer Finance Companies issued by the China Banking Regulatory Commission. The China Banking Regulatory Commission announced on the 13th that it officially issued the Measures for the Pilot Management of Consumer Finance Companies and started the pilot examination and approval of consumer finance companies. The China Banking Regulatory Commission will adopt the method of piloting such institutions first and then gradually liberalizing them, and approve one institution in Beijing, Tianjin, Shanghai and Chengdu for piloting, and then promote them after success.

According to the Measures, the main investors of consumer finance companies should be domestic and foreign financial institutions and other investors recognized by the CBRC, and the total assets at the end of the latest year should be no less than 6 billion yuan. The minimum registered capital of a consumer finance company is 3 million yuan; In the pilot stage, the business scope of consumer finance companies only includes personal durable consumer goods loans and general-purpose personal consumption loans, and does not involve real estate loans and auto loans.

based on international experience, the measures set relevant regulatory indicators for consumer finance companies, including capital adequacy ratio of not less than 1%, asset loss reserve adequacy ratio of not less than 1%, and interbank borrowing ratio of not more than 1% of total capital.

Reference: Baidu Encyclopedia-Consumer Finance