Risk Management Of Housing Loans And Enlightenment Of American Subprime Mortgage Crisis

Since the reform of house capitalization in 1998, china's real estate market has developed rapidly, total development amount has been up to the leading position in the world and credit command expands sharply with the continuous and rapid growth of national economy and gradual improvement of house system reform. The commercial housing loan has the advantage of lower non-performing loan rate and higher income comparing with other credit varieties in improving credit assets quality and raising income, etc. Therefore, all the commercial banks enlarge investment and fight for the house loan market share, which has induced the relevant housing loan growth higher than that of others in the past ten years. While the domestic risk management on housing loan has not received the market test and a lot of problems about it have appeared with the gradually increasing housing loan quantity and own characteristics of expensive value, long deadline, poor liquidity and strong policy. At present, china's real estate market has not experienced a sharp decline in housing prices to lead to insufficient mortgage and all the risks have been covered by the up rising house prices, just as the U.S market before subprime mortgage in 2006. However, the outbreak of subprime mortgage crisis in 2007 made the subprime mortgage market collapse, which accounted for one quarter of the total mortgage. The crisis also caused a serious impact on global financial markets and economic growth. Although it is related with the down house price in America since 2006, the exposed housing loan risk management shouldn't be ignored.Beginning from the meaning and characteristics of housing loan risk management, this thesis uses relevant theoretic knowledge on macro-economics, finance, risk management to analyze the five causes of US subprime mortgage crisis including macro-economic environmental change in America, lack of management within bank, assessment distortion of security rating agency, the transferred and enlarged crisis through securitization of assets and bad supervision by relevant department. Furthermore, the paper shows the enlightenment to china's financial market from subprime mortgage crisis combing the influence of US subprime crisis and china's real situation of housing loan. At last it brings forward corresponding preventive measures from the aspects of macro-control, supervision department and banks themselves.