Study On The Interest Rate Risks And Credit Risks Of Commercial Banks In Housing Collateral Loan

The housing collateral loan rises gradually in our country, but under the condition of limited channel to raising money, the capital needed in real estate investment is mostly depended upon the loans of commercial banks, especially on the State-owned banks. At present, real estate industry is of high risks, which inevitable leads to the high risks in financial industry. Correspondently, the risks of real estate are focused on commercial banks. Therefore, we should analyse the risk of the commercial bank in housing collateral loan by the system and quantitative risk management techniques. Paper provide an effective solution to prevent the commercial banks from the real estate financing risks for the our country.In the first part, the paper concrete qualitative analysis the commercial bank is in the housing collateral loan of risk, and reviews the evolution from qualitative to quantitative risk management techniques of the commercial banks. By the same time, the paper introduces a kind of advance risk management technique - Value at Risk, or VAR. In the second part, the paper studies how to use the VAR method to measure and control risk in terms of default rate. On this foundation, the paper concrete qualitative analysis the commercial bank is in the housing collateral loan of interest rate risk and credit risk management, be worth risk the risk of the housing collateral loan that the method of VAR apply in the commercial bank manage, carrying on the valuation to the housing collateral loan risk. This paper study the loss of the' combination load analyses the interest rate risk, giving respectively bank for make up to lose the capital gold request need. And analyse the credit risk of the housing collateral loan analytical by using the model of Credit Metrics and the model of Monte Carlo.Finally, the paper give some advice on how the commercial banks of our country to set up modern risk management system under the condition of reformations of financial system and the more intense competitions. In addition, the paper studies how to control internal risk of commercial banks under the framework of VAR so as to optimize the capital distribution.