A Case Analysis On Credit Granting Of G Bank To JX Consumer Finance Company

With the gradual intervention of the regulator,the consumer financing industry would be reorganized step by step.The blowout of consumer financing ABS showed the eagerness of the consumer financing companies in funding.As one of the earliest bank cooperating with consumer financing companies,G Bank has adopted a more prudent view in the industry,gradually reducing the business volume with such companies.Behind the credit policy lays the management concept of a bank on loan business.As for the credit policy on consumer financing specifically,the change of credit policy means the shift of bank operation strategy and view on the consumer financing industry.The thesis presents the reasons and practices of credit policy in G Bank by looking at some consumer financing company credit cases.The thesis elaborates the FI credit granting and the problems of G Bank through case analysis and referring to the documents domestic and abroad.By taking the JX Consumer Finance as an example,the essay briefs on the credit application and approval as well as the requirements in G Bank,introducing the change of credit policy on the industry.After sixmonth due diligence,the HO credit approval department rejected the credit approval for JX and reviewed its credit policy on the financial industry,being more cautious on non-bank consumer finance companies,mainly due to the concern on the downward trend of the industry and potential withdraw in panic after regulator gradual intervention.G Bank foresees some risks in spite of the prosperous development of FI business.The business sectors are not paying enough attention to risk control while aiming at high return.7 out of the 12 consumer financing companies with credit facility have triggered the early warning,regardless of which the business departments are still availing new credits.The relative departments have been reducing or freezing the credit facility to control the risks.Through the analysis of consumer financing company risk in G Bank and taking into consideration of the market situation as well as its own status,the thesis discusses the credit facility granting on this industry in G Bank and proposes some measures for management,aiming to help G Bank improve its credit management and provide experiences for other FIs in credit management.