Analysis Of Liquidity Risk In Auto Financial Leasing Industry

Over the past ten years,China's automobile industry has been developing strongly.The automobile industry is becoming more and more prominent as the pillar industry of the national economy.With the support of national policies,the continuous improvement of financial market and capital market,the auto financial leasing becomes a new way for consumers to buy cars.With the rapid development of auto financial leasing,the credit risk,the operational risk and other risks,which run through the whole stage of the business,have attracted much attention.However,the liquidity risk,as the ultimate manifestation of all risks,is rarely noticed.Liquidity risk is a major risk for the company,it should be a basic and important work for the company.Firstly,this paper summarizes the concept,function of auto financial leasing and the forms of its risks and discusses the liquidity risk and influence factors in detail.On the basis of the above theoretical analysis,this paper analyzes the risk management situation of L group in detail,in particular,it analyzes the liquidity risks that exist in the company and what measures that the company has taken to address them.Then,taking L group as an example,this paper discusses the common problems of liquidity risk in the whole auto financial leasing industry,such as the lack of control of liquidity risk,single financing channels,etc.And this paper suggests that the lack of understanding of liquidity risk by managers,the unsatisfactory financial situation and the non-standard financing departments are the root causes of these problems.Finally,from solving the problems of liquidity risk in L group and extending this to others,this paper puts forward some suggestions on strengthening the liquidity risk management awareness of management,planning organizational structure scientifically,establishing professional risk control team,expanding financing channels and arranging capital structure reasonably.These suggestions have a good inspiration for solving the ubiquitous liquidity risk problem in the auto financial leasing industry.