| The latest data from the China Association of Automobile Manufacturers:2013,China’s automobile production and sales both over20million, refresh global car salesrecord again. These data indicate that the rapid development of China’s automobileindustry has already become a giant global automotive industry. However, apart fromthe total sales of these data, compared with foreign mature automobile industry, thedevelopment of China’s automobile industry has not yet mature sound. Throughoutthe world automotive industry value chain, financial services have become an integralpart of, Auto finance company is the main provider of financial services. Auto financecompanies in China approved the establishment of the time for almost a decade,which provides financial services professional with their risk managementcapabilities are to be further improved.Thus, while the rapid development of China’s automobile industry, the betterintegration of auto finance and automotive industry is imperative. Automobile financecompany that provides professional automotive financial services, but also with thecar manufacturers are closely linked, it will certainly promote the rapid and healthydevelopment of the auto finance industry forward and the whole automotive industry.How this paper is to study Chinese auto finance companies to strengthen themanagement of personal auto credit risk.In the paper, The author first reviews the auto finance and auto financecompanies in China’s development process. Auto finance companies are allowed toset up in the beginning of our country, there are three major automobilemanufacturers in the world to come to China to set up auto finance companies. They join more confirmed China’s auto loan market bears vitality. Auto finance companyhas great significance in our country’s establishment. Because it is more specialized inautomotive financial services, they are able to promote the development of theautomotive finance industry. Vehicle manufacturers because it is closely linked, theyare able to promote the development of the entire automobile industry. However, thedevelopment of China’s auto finance company still faces some problems. For example,market access barriers remain high, financing is still relatively narrow channels, ourcredit system is not perfect to increase the difficulty of risk management.Then, this paper introduces the concepts and basic requirements of personalcredit car loan application. On this basis, based on the risk classification of thefinancial sector, this paper focuses on research controllable risk personal auto loans.Controllable risks include: credit risk, operational risk, reputational risk. In the studyof game theory after theory..Found in China’s auto finance company-specific"inter-off style" operation mode, auto finance companies and co-existence of thedealer have principal-agent relationship. Therefore, car dealers can cause a series ofactions to credit risk. Especially when the auto finance company’s lack of cooperationin supervision and management of the dealer, the dealer will cooperate select"dominant decision-making", leading to greater losses for the auto financecompany.Further analysis related to these four risk factors,.and there are threecontradictions are not conducive to the management of risk, they exist in the "Indirect Customer" type of operation mode.In the last part of the paper, the loan process will be re-divided into threeimportant aspects of risk management. The first important part called the dealer toapply for loans to help customers link. Lending survey, review and approval to theloan, as the second link.Loan management process for the third link. And concluded that riskmanagement measures of these three aspects. In particular, to strengthen the principal -agent relationship of agents that cooperate dealer supervision and management, toavoid the occurrence of a personal car loan concentration of credit risk. I believe thatdevelop risk management policies are all derived from risk aversion, It may alsoreduce the profits generated, and strengthen internal controls and improve theprofessional quality of the staff is a key point to increase company profits. So whenmaking risk management measures, This paper studies focus more on how to improveinternal control and comprehensively improve the professional quality of the staff. |
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