Assistant Professor Looks at Auto Loans in Published Paper

In her paper, “An Empirical Study of Bank Stress Testing for Auto Loans,” Assistant Professor of Accounting Ming Fang presents an empirical study of stress testing for portfolios of auto loans. Along with her co-authors — Deming Wu, Office of the Comptroller of the Currency, United States, and Qing Wang, Southwestern University of Finance and Economics, China — she finds that loans aged five years or more have significantly higher default probabilities. This finding, they say, raises concerns about the increasing maturity of auto loans in recent years.

The paper appeared in December 2018 in the Journal of Financial Stability.