Download pdf
Comparison of Chinese and American Banks' Loan Financing Business
- 1 University of Connecticut
- 2 University of California
- 3 University of Washington
- 4 Penn State University
* Author to whom correspondence should be addressed.
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
[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.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 2023 International Conference on Management Research and Economic Development
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).