Empirical Research On Risk Management Of Consumption Credit Of Auto Financing Company

With the continuous improvement of income level of our country residents’income level and the development of the national consumer policy, familyautomobile consumption of Chinese people’s consumption has becomeanother hot focus. Auto consumption credit builds “intimate contact” with theChinese people. Auto consumption credit has become the second largestconsumer credit market. At present, automobile consumer credit companywhich provides auto consumption credit mainly include commercial Banks,financial services companies, auto dealers, and other financial institutions. Inthe early stages of the automobile consumption credit business in our country,the main capital providers is the commercial Banks, but with the continuousdevelopment of the business and market expansion, large international autofinancing companies are joining the ranks, share the Chinese autoconsumption credit market with commercial Banks. Recently, auto financecompanies have a rapid development, gradually taking share of the marketwith commercial Banks, so the auto consumption credit problem of autofinancing company is a hot issue.This dissertation has first introduced Signal Fragile Theory, ExpectedIncome theory, Asymmetric Information Theory, Risk Management Theory,Game Theory and Economic Growth Stage Theory, which has laid theeconomic theoretical foundation for the follow-up study of the development of automobile consumption credit of automobile financial company. Then it hasrespectively reviewed the development of automobile consumption credit indeveloped countries and China as well as summarized the difference ofautomobile consumption credit between China and developed countries, in anattempt to explore such development experiences that can be used forreference. The credit risk is one of the most focused issues for the autofinancing companies. In this paper, we use multi-game method to discriminatethe risk of consumer credit in the process of auto finance company, and thenput forward three hypotheses. Using2009-2013Toyota Finance Corporationdata prove the hypotheses. Finally, in order to make the automobile financialcompany of automobile consumption credit business to healthy andsustainable development, put forward some corresponding countermeasuresfor each risk.This dissertation has the following main innovative points:1．To conduct an even more systematic study on the automobileconsumption credit operations from the perspective of the auto financingcompany. This dissertation has mainly conducted the systematic study andanalysis in respect to the automobile consumption credit operations of autofinance companies from the angle of risk control, in order to promote thedevelopment of the automobile consumption credit operations of the autofinance companies in an all-round way.2．Using2009-2013Toyota Finance Corporation data prove thehypotheses. Depth analysis the negative factors of automobile consumption credit business.3. Using the game theory, build a sound operation mode of automobileconsumption credit, in order to realize the long-term win-win cooperation.