Study On Credit Risk Management Of Auto Finance Company In China

Abstract:Recently, Auto Finance Company as a professional institution in automobile consumption loan has already appeared and developed in the domestic financial market. Since the first domestic auto finance company——GMAC-SAIC automotive finance company has established in2004, there are16auto finance companies in China by the end of2012. As a result of the imperfect personal credit system, the morbidity of the relevant legal regulations, the lack of professional on personal auto loans business, the auto finance companies are short of efficient risk management and control system. However, the personal credit risk is particularly prominent.At first the thesis introduces how and why the credit risk of the auto finance companies product. According to the research I have read, the external cause factors include the State macro-economy policy, economic fluctuation, market competition, social environmental factor; the internal cause factors are employees’ability to identify risk and the companies’ risk management and control system. Besides, the thesis shows us the forming process of the credit risk in a simple way. Then, based on the analysis and comparison of the credit risk measurement models and data availability, this paper chooses Logistic regression model to conduct a empirical analysis on the factors affecting the credit risk of the auto finance companied in China. The model considers the credit customers’ personal credit as the research object and the personal data as the data base. Next, with the help of the SPSS software, we can get the factors which are significantly associated with the default rate. Furthermore, this paper introduces SANY auto finance company as an example to analysis the credit operations and the credit risk management. At last, according to the causes of the credit risk, the types of credit risk and the results of the empirical analysis, we work out the countermeasures of the credit risk management.