The Prevention Of Personal Automobile Consumption Credit Risk For Commercial Bank

The business on automobile consumption credit risk has been experiencing all kinds of difficulties and hardships including the periods of start, suspension, development, and competition from its initiation in China since 1995. In our country, there is less than 10% of automobile sale which takes the form of personal consumer loan. The credit risk has become the main factor that stood in the way of the automobile consumption loan from commercial bank in China due to the lack of a set of risk prevention mechanism on it, and the problem that the social credit system has not been completely established and the related policies on personal automobile consumption loan is still imperfect.In this thesis, I analysis the types and the reasons of the risks among automobile consumption loan and find that all these risks are due to the facts of imperfect risk system, lack of the related laws, and imperfect management of the commercial banks own. Therefore, I establish the assessment system for automobile consumption credit risk, including the risk evaluation before and after loan, which are employed to control risk and have the function of post-loan risk warning respectively, aiming to reduce the loss of commercial banks. This thesis presents a detailed description of the implication of risk assessment system in real business through case study. Finally, I propose 6 different kinds of suggestion and strategies for the automobile consumption loan, including establishment and perfection of the personal credit system to effectively reduce the credit risks, strengthening the consciousness of risk operation, establishing the mechanism for post-loan risk warning, perfection of the guarantee system for consumer loan, further improvement of commercial bank internal management, and expansion of the channels of risk transfer. I hope that all these suggestions above may play some role in the development of the industry of automobile consumption loan.