Research On Credit Risk Factors Of Clients In Consumption Finance Companies In China

Since 2009 and 2013,with the approval of the state council,China banking regulatory commission has promulgated and revised the"measures for the pilot management of consumer finance companies",and established four consumer finance companies with the approval of the state council in 2010.According to the 2016 China Internet consumer financial market research report released by iresearch consulting company,China's consumer loan balance will reach 43.28 trillion yuan in 2019,accounting for 35.73%of the total credit.This huge market size,has attracted the major financial platforms have stepped in to fight for market share.However,behind the rapid development of China's consumer finance and the growing strength of consumer finance companies,the biggest problem they encounter is the problem of credit risk,which is related to the late start of China's consumer finance,incomplete policies and systems,and weak social concepts.In order to study the credit risk problems encountered by Chinese consumer finance companies and try to reduce the credit risk,this paper will first collect the successful cases of domestic and foreign consumer finance companies,and through qualitative analysis and descriptive statistical analysis of data,sort out the advanced foreign experience and domestic development status.Then,the actual transaction data of a consumer finance company in China is taken as a micro sample to explore the factors of personal default of customers of consumer finance companies from the perspective of individuals,combined with the logit model,and the previous research conclusions are supplemented and improved.Finally,on the basis of current situation analysis,case analysis and empirical analysis,this paper sorted out the research conclusions and put forward targeted Suggestions from the perspectives of national policy formulation,internal risk management of consumer finance companies and the construction of personal social credit system.The main conclusions are as follows:First,China's consumer demand for credit is rising,but there are still differences with foreign countries.From the perspective of the development trend of China's consumer spending,China's consumer structure is in the stage of continuous optimization,and consumer demand for credit is also rising.However,compared with the United States and South Korea,China's consumer finance penetration rate is relatively low.Second,China's consumer finance company risk management started late,but the development trend is good.At present,Europe and the United States and other countries in the field of consumer finance have a complete credit evaluation system,laws and regulations to ensure that,at the same time,there are specialized agencies,rich consumer financial products,a variety of marketing methods.Although a few consumer finance companies in China started late,they have achieved great success.Thirdly,individual default factors of consumer finance companies are diverse and heterogeneous.Older borrowers who are married,have CPF,have longer loan maturities and are less likely to default,while older borrowers with higher approval levels are more likely to default.Based on this,the following policy Suggestions are put forward:first,improve the credit risk management system,strengthen the credit risk management concept;Second,increase the types of credit risk management and reduce credit risk comprehensively;Third,learn from foreign advanced experience,optimize the process of credit risk management;Fourth,the establishment of a complete customer individual credit rating system.