Research On Credit Risk Of Automobile Distributor Financing

With the rapid growth of China’s automobile industry,the market space is far from saturated.It is expected that the market will continue to grow steadily in the next decade,and there is bound to be a large space for the growth of auto credit.Compared with western developed countries,China’s automobile industry developed relatively late.In1980,the annual sales volume of China’s automobile was only 200,000.In 2009,the annual sales volume of China reached 13.64 million.Although China’s automobile production and sales have been ranked first in the world for 8 consecutive years,China’s automobile market is far from saturated from the perspective of the global market pattern.According to the statistics of China association of automobile dealers,the total number of automobile dealers in China was about 23,820 in 2014,22,900 in 2015,and26,685 in 2016,an increase of 5.8% year on year.With the increase in the number of dealers,the demand for credit is increasing day by day.In recent years,with the continuous growth of China’s automobile sales,the number of automobile dealers has also increased rapidly,and the inventory financing business of automobile dealers of financial institutions has gained a large space for development.However,under the influence of fierce competition in the automobile market,the uncertainty of dealers’ operation increases rapidly,and the credit risks of vehicle financing business occur frequently.Dealers are faced with not only the risk of competition in the industry market,but also the impact of diversified operation,blind expansion and other factors of the dealer group,as well as the risk of unexpected policies and other factors.Different from auto financing companies,oems often have auto financing companies within their own systems.As related parties of oems,auto financing companies can have a very comprehensive understanding of the operating conditions of dealers and master the operating data of individual dealers,groups and even regions.Banks often find it difficult to achieve information symmetry,and the banking industry is now seriously homogenized,with fierce competition in the industry and closed information channels.In the process of competing for customers,excessive financing and improper financing are likely to occur,which will lay hidden dangers for credit risks.As the first listed automobile dealer group in China,pang da group has the largest scale,multiple brand authorization,significant cost advantages and obvious competitive advantages in the industry.However,after the listing,the enterprise,under the pressureof poor operation of main business and slowing external economic growth,embarked on the road of selling assets for survival,which also brought higher risks for the bank’s credit financing to the huge group.In view of this,this article based on the relevant theory of corporate banking risk control,as well as the large group’s own operation characteristics,industry characteristics,the financial situation,the car dealer financing risk control problems and reasons existing in the aspects of the more in-depth exploration,for commercial Banks to carry out the dealer inventory financing,has important practical significance.This paper is divided into five parts: the first part is the introduction,which introduces the research background and significance of this paper,as well as relevant domestic and foreign literature on trade financing and bank risk control,and puts forward research ideas and methods.The second part discusses the characteristics and classification of bank risks,as well as the basic strategy of risk control,which lays a theoretical foundation for the case study.The third part is the case analysis,using the quantitative and qualitative analysis method,analyzes the main causes of the formation of the huge group business risk.The fourth part analyzes the existing problems and causes of Banks’ risk control over huge groups based on relevant theories of bank risk control.The fifth part puts forward Suggestions for Banks to carry out auto dealer financing,including fully evaluating the development prospect of the industry,balancing business development and risk prevention,refining the operation process,clarifying job responsibilities,and emphasizing the application of science and technology in risk control.