Comparison of Chinese and American Banks' Loan Financing Business

Research Article
Open access

Comparison of Chinese and American Banks' Loan Financing Business

Hongdi Hu 1* , Jiahao Qian 2 , Xiaotong Niu 3 , Kaiyue Zheng 4
  • 1 University of Connecticut    
  • 2 University of California    
  • 3 University of Washington    
  • 4 Penn State University    
  • *corresponding author hongdi.hu@uconn.edu
Published on 13 September 2023 | https://doi.org/10.54254/2754-1169/18/20230051
AEMPS Vol.18
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-79-9
ISBN (Online): 978-1-915371-80-5

Abstract

In this article, we aim to compare the bank’s loan financing business in China and the United States. We will focus on banks' personal lending business, including housing, student, and personal consumption loans. We will analyze the personal loan business of Chinese and U.S. banks separately and compare the personal loan business of both banks. The result of our comparison is that the government controls the lending system in China. China's loan system is formulated by the People's Bank of China, which is less liberal than the US loan system. China's loan laws are also imperfect, and there is a lack of third-party supervision. The United States has a complete system with guarantor agencies that China does not have. The government and the market are Multi-participation, and the Secondary Market is also involved, sharing the risk.

Keywords:

mortgage, loan system, personal credit

Hu,H.;Qian,J.;Niu,X.;Zheng,K. (2023). Comparison of Chinese and American Banks' Loan Financing Business. Advances in Economics, Management and Political Sciences,18,1-13.
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References

[1]. 2022 What are the latest personal housing loan policies (n.d.). Retrieved August 26, 2022, from https://mip.66law.cn/laws/457647.aspx?ivk_sa=1023345q

[2]. Housing loans. GovLoans. (n.d.). Retrieved August 26, 2022, from https://www.govloans.gov/categories/housing-loans/

[3]. McMillin, D. (n.d.). Fixed-rate mortgages: A guide. Bankrate. Retrieved August 26, 2022, from https://www.bankrate.com/mortgages/what-is-a-fixed-rate-mortgage/

[4]. Mortgage loan options. What are your mortgage loan options? | Central Bank. (n.d.). Retrieved August 26, 2022, from https://www.centralbank.net/mortgage-center/loan-types/

[5]. U.S. Bank Adjustable Rate Mortgage (ARM). Adjustable-rate mortgage loans | ARM rates | U.S. Bank. (2022, August 15). Retrieved August 26, 2022, from https://www.usbank.com/home-loans/mortgage/adjustable-rate-mortgages.html

[6]. H.R.6 - 105th congress (1997-1998): Higher Education Amendments of 1998 ... (n.d.). Retrieved September 1, 2022, from https://www.congress.gov/bill/105th-congress/house-bill/6

[7]. Woodhall, M. (1987). Lending for learning: Designing a student loan programme for developing countries. Commonwealth Secretariat.

[8]. Mortgage rates. Freddie Mac. (n.d.). Retrieved September 1, 2022, from https://www.freddiemac.com/pmms

[9]. Personal consumer credit: A comparison between China and the United States. (n.d.). Retrieved September 4, 2022, from http://rdbk1.ynlib.cn:6251/Qk/Paper/342816#anchorList

[10]. Smyth, D. (2021, February 2). How much do homes increase in value in 10 years? Home Guides | SF Gate. Retrieved September 9, 2022, from https://homeguides.sfgate.com/much-homes-increase-value-10-years-100948.html

[11]. Personal consumer credit_Baidu encyclopedia. Baidu encyclopedia. (n.d.). Retrieved September 4, 2022, from https://baike.baidu.com/item/%E4%B8%AA%E4%BA%BA%E6%B6%88%E8%B4%B9%E4%BF%A1%E8%B4%B7/960595


Cite this article

Hu,H.;Qian,J.;Niu,X.;Zheng,K. (2023). Comparison of Chinese and American Banks' Loan Financing Business. Advances in Economics, Management and Political Sciences,18,1-13.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 2023 International Conference on Management Research and Economic Development

ISBN:978-1-915371-79-9(Print) / 978-1-915371-80-5(Online)
Editor:Canh Thien Dang, Javier Cifuentes-Faura
Conference website: https://2023.icmred.org/
Conference date: 28 April 2023
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.18
ISSN:2754-1169(Print) / 2754-1177(Online)

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References

[1]. 2022 What are the latest personal housing loan policies (n.d.). Retrieved August 26, 2022, from https://mip.66law.cn/laws/457647.aspx?ivk_sa=1023345q

[2]. Housing loans. GovLoans. (n.d.). Retrieved August 26, 2022, from https://www.govloans.gov/categories/housing-loans/

[3]. McMillin, D. (n.d.). Fixed-rate mortgages: A guide. Bankrate. Retrieved August 26, 2022, from https://www.bankrate.com/mortgages/what-is-a-fixed-rate-mortgage/

[4]. Mortgage loan options. What are your mortgage loan options? | Central Bank. (n.d.). Retrieved August 26, 2022, from https://www.centralbank.net/mortgage-center/loan-types/

[5]. U.S. Bank Adjustable Rate Mortgage (ARM). Adjustable-rate mortgage loans | ARM rates | U.S. Bank. (2022, August 15). Retrieved August 26, 2022, from https://www.usbank.com/home-loans/mortgage/adjustable-rate-mortgages.html

[6]. H.R.6 - 105th congress (1997-1998): Higher Education Amendments of 1998 ... (n.d.). Retrieved September 1, 2022, from https://www.congress.gov/bill/105th-congress/house-bill/6

[7]. Woodhall, M. (1987). Lending for learning: Designing a student loan programme for developing countries. Commonwealth Secretariat.

[8]. Mortgage rates. Freddie Mac. (n.d.). Retrieved September 1, 2022, from https://www.freddiemac.com/pmms

[9]. Personal consumer credit: A comparison between China and the United States. (n.d.). Retrieved September 4, 2022, from http://rdbk1.ynlib.cn:6251/Qk/Paper/342816#anchorList

[10]. Smyth, D. (2021, February 2). How much do homes increase in value in 10 years? Home Guides | SF Gate. Retrieved September 9, 2022, from https://homeguides.sfgate.com/much-homes-increase-value-10-years-100948.html

[11]. Personal consumer credit_Baidu encyclopedia. Baidu encyclopedia. (n.d.). Retrieved September 4, 2022, from https://baike.baidu.com/item/%E4%B8%AA%E4%BA%BA%E6%B6%88%E8%B4%B9%E4%BF%A1%E8%B4%B7/960595