Advances in Economics, Management and Political Sciences

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

Series Vol. 18 , 13 September 2023


Open Access | Article

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

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 18, 1-13
Published 13 September 2023. © 13 September 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Hongdi Hu, Jiahao Qian, Xiaotong Niu, Kaiyue Zheng. Comparison of Chinese and American Banks' Loan Financing Business. AEMPS (2023) Vol. 18: 1-13. DOI: 10.54254/2754-1169/18/20230051.

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

References

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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/

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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

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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

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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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Volume Title
Proceedings of the 2023 International Conference on Management Research and Economic Development
ISBN (Print)
978-1-915371-79-9
ISBN (Online)
978-1-915371-80-5
Published Date
13 September 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/18/20230051
Copyright
13 September 2023
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated