Auto Loan Credit Risk Management Research

The automobile consumption credit business in China was developed not for a long time. Its scale is relatively small and the industrial chain is immature. Compared to Europe, the United States and other developed countries, which are 70% permeability of automobile consumption credit, in China, the ratio is only 20%. There will be rapid growth in the future. At the same time, the automobile consumption credit risk management mechanism of our country, especially its credit risk evaluation system, also needs a perfect synchronization.This paper takes Z bank as an example, which has a leading position in the auto loan industry, and use the commercial bank risk management theory to analyze problems of automobile consumption credit risk evaluation system in Z bank. Based on that, propose corresponding improvement suggestions and to provide beneficial enlightenment. According to the analysis, we found that the non-performing loan ratio of auto credit business in Z bank is higher. On risk control, interest rate risk prevention of auto loan business is success. But the assessment and precaution in both credit risk and operational risk, are still insufficient. This paper focuses on problems, such as the heterogeneity of credit risk evaluation index, the strong subjective evaluation method and the non-quantization evaluation conclusion, using Logistic model to build suitable for Z bank credit risk evaluation system.The research results show that,there are four main index have significant effects for personal credit scores in the auto loan risk evaluation model of bank Z, such as marriage status, education situation, the nature of the unit, monthly income and guarantee conditions(self-owned housing and joint applicants /guarantor). Among them, the unmarried clients have high risk of default than the married clients. At last, in view of existing problems, puts forward the following suggestions. First, improve the credit risk evaluation system to effectively control the non-performing loan ratio. Second, strengthen the dealer management, to decrease the credit risk of distribution channel.