Research On Risk Management Of Credit Card Installment Business For Automobile Of Bank X

In recent years,with the rise of credit card business of domestic commercial banks and the rapid increase of private car ownership,China's automobile consumption market has become mature gradually.In the meanwhile,credit card installment for automobile achieved rapid development.During the process,with the gradually growing market size and increasingly difficult risk management,the contradiction between substantial business growth and stagnant risk management is increasingly prominent.Moreover,the absent,misplaced and incomplete risk management exists in the process of credit card installment for automobile.This problem results in many risks including high rate of non-performing loans,frequent customer credit risk,collection and disposal of non-performing assets which are difficult to realize,market risks which are difficult to control,partner fraud risk which is difficult to prevent,as well as operational risks.Bank X is a small joint-stock commercial bank.Because its retail business develops late,credit card installment for automobile began in the beginning of 2015 and achieved certain development after several years of rapid development.However,in order to seize market shares,Bank X focuses on marketing section while paying little attention to the risk management of credit card installment for automobile.Thus,the system construction and process design are not perfect.The risk management awareness of staff is not strong.As a result,there are some serious potential risks such as the lack of access audit,the loopholes in the management and the imperfect post-access management.To solve the above-mentioned problems,I studies the references and financial theories related to the risk management of credit card installment for automobile,as well as analyzes the characteristics and main risk points that may appear in different links of this business.On this basis,I conducts a comprehensive risk management research on credit card installment for automobile of Bank X.In addition,I analyzes and summarizes the risk status quo and existing problems in risk management of this business,looking for the root cause of these problems.Then,this thesis puts forward whole-process risk management solutions and management philosophies before,during and after the credit card installment for automobile.Under the guidance of this concept and from the actual situation of credit card installment for automobile in Bank X,I make full use of some theories and tools related to credit card and automobile finance such as customer stratification theory,expected income theory and "5C" theory.Additionally,I combines various types of risks encountered in the actual work.Therefore,I proposes many specific measures for risk management of Bank X's credit card installment business for automobile,including pre-approval procedure,improved assessment and incentives,strict customer access and enhanced personnel allocation,which provides some references for other small and medium-sized commercial banks to do the risk prevention of the same kind of business.