Importance The article analyzes various viewpoints on the substance of risk and accumulates information on various risk factors influencing banks' operations in car loan financing, considering the specifics of this banking area. Objectives The research assesses the risk of car loan financing and its specifics in terms of an integrated approach, which implies grouping and analyzing all factors, which may trigger adverse circumstances for banks in the segment. Furthermore, I indicate the need to understand the substance of risk in this segment in terms of the integrated approach so to adequately handle this risk in the future. Methods The research relies upon an analytical and synthetic approach to narration. I review various stances of experts in the general theory of risk and financial and credit risks. I emphasize the disputable nature of the risk concept in the scientific milieu. It allowed to summarize the expertise in the above areas. Results The article provides broader systematization of risk factors as part of the integrated approach, and assesses the risk, considering the specifics of car loan financing. Conclusions and Relevance The article notes that the risk of consumer lending and loan financing should not be classified as a credit risk only. It is reasonable to study the risk of car loan financing. The findings are the basis for an appropriate risk management mechanism.
Keywords: financial risk, credit risk, car loan financing, risk factor
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