Consumer Finance & Non-Banking Financial Institutions Working Group Position Paper 2018/2019 - 消费金融与非银行金融机构工作组建议书2018/2019 Go back »


Consumer credit makes it possible for consumers to buy products before they have saved the full amount of money required. As such it helps stimulate economic growth as it leads to higher consumption. In China, consumer credit still has great potential to grow and play an instrumental role in China’s shift from an export-orientated model to one based more on domestic consumption. Regulated by the China Banking and Insurance Regulatory Commission (CBIRC), consumer finance companies are allowed to operate nationwide and provide consumption-purpose loans, excluding car loans and mortgages, up to Chinese yuan (CNY) 200,000.

The development of the consumer finance industry is vital for improving the consumption structure of Chinese citizens, for promoting quality consumption and for helping to realise the ‘Chinese dream’. Increasing the scale of consumer credit and stimulation of consumer demand can be a catalyst for stabilising Chinese economic growth in the era of the so-called ‘new normal’.

The social benefits of consumer finance products include the following:

  • They help customers make purchases they could not otherwise afford, allowing them to pay the amount back in affordable instalments.
  • They give customers easier access to durable goods, improving their standard of living.
  • The demand for goods is increased and the economy is stimulated as a whole. 
  • They instil financial discipline and create a culture of loan repayment.

The Consumer Finance and Non-banking Financial Institutions (NBFIs) Working Group was established in 2008. It includes leading European consumer finance specialists who operate consumer finance companies (CFCs), auto finance companies (AFCs), small loan companies and other entities engaged in consumer finance services in cooperation with third parties (e.g. guarantee companies) in China. The establishment of this working group is a reflection of the importance attached to the emerging consumer finance industry in China, its relevance to the State Council’s major policy objectives and the attention European players pay to this agenda.

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