What is a consumer finance company?

The so-called consumer finance company refers to a non-bank financial institution established in People's Republic of China (PRC) with the approval of the China Banking Regulatory Commission, which is based on the principle of small amount and dispersion, does not absorb public deposits, and provides loans for the purpose of consumption for individual residents in China. Analysis and comparison: At present, the CBRC has submitted a proposal to the senior management to set up pilot consumer finance companies in big cities such as Beijing and Shanghai, and will issue the Measures for the Administration of Pilot Consumer Finance Companies in due course. The regulatory authorities have set thresholds for the company's business activities, such as capital adequacy ratio and sources of funds. However, if this kind of consumer company really appears, it will be a flat thunder in China's financial history. Its pioneering significance may only be slightly comparable to that of folk credit. folk credit reopened the pawnshop in its early years and is now ready to open. But even so, the last two degrees are different. Because they just dug up the fat loan legally and vigorously from the market monopolized by commercial banks. Speaking of it, this is actually a true and legal embodiment of the different levels of the lending market, and there is no essential revolution in the mode of operation. But what is to be established now is a brand-new financial service institution. In this proposal called Consumer Finance Company, the core symbol of its operation mode is to meet the short-term, small-amount, unsecured and unsecured conditions. For financial services with a slightly similar meaning, China now only has credit card overdrafts. However, among domestic consumers who can use credit card overdraft, as long as they are not malicious overdraft consumers, it is estimated that there is no need for innovative services of consumer finance companies; Moreover, such people are more suitable for banks and credit card companies to serve the market division of consumer credit. Short-term, unsecured micro-consumer credit does not exist in China. Because even in countries with developed consumer credit, their consumer finance companies mainly serve low-end individual customers with stable income.