A Study Of Credit Risk Management Of China Auto Financing

Recently，the profit model of automotive industry has been transformed fromvehicle manufacturers, parts processing, marketing services and other traditionalsectors into financial services. The central bank predicts that in2015, the totalamount of auto financing credit will exceed$230billion, so the credit risk related toour car finance related research will have far-reaching significance. By exploring theautomotive financial services industry at home and abroad of the developmentprocess and the auto finance industry role in promoting the economy, and by thehistorical experience of the Chinese and foreign auto finance industry analysis, thefactors restricting the development of China’s auto finance industry conclusions. Thispaper considers the problem of credit risk in the financial sector should be the car togive full attention, so this car finance credit risk assessment conducted in-depthresearch. First introduced the classical theory of the three models evaluatedrepresentative, and shows how these three theoretical model is applied to evaluatethe credit institutions lending methods. Secondly, they introduced Credit Metricmodel, and this model is modified to form a car credit risk-benefit assessment model.In this paper, the model added an average incremental profit concept to value at riskwas more effective metering automobile consumer credit, provide effectivetheoretical support for auto finance companies and car manufacturers operatingdecisions. Finally, we learn from foreign advanced management experience inautomotive credit for our car credit risk control policy suggestions concerning thedevelopment of the automobile finance supporting measures, consumer credit andcar finance product marketing and management innovation.