The basic problem
Car loan business is retail banking, services intended primarily for personal, quantity limit small and dispersed, the Bank takes a lot of manpower and material resources for credit review and management, and in case of default, the disposal cost is very high. Banks face a great deal of contradictions, both want to expand the market and to minimize risks in theory, materials provided by the Bank requires more complex the more its relative risk is smaller, the more robust reviews the credit status of the borrower. But because of competitive pressure, banks are having to relax their lending criteria. In the short run, that will help expand its market share in this area, but in the long run, there lurks a big crisis.