The Causes Of The Financial Crisis In The United States And The Inspiration For Commercial Bank Mortgage Business In China

Influenced by finance crisis in 2007, economy declined sharply in the world. In theory, through analyse the reason of the U.S. financial crisis,we can gain the partly explanation from Friedman's theory of monetary policy mistakes, financial instability hypothesis, the key point theory of the banking system ,"Moral hazard"theory.Used expansionary monetary policy that had led to a growing real estate bubble for potential problems to the crisis;The U.S. financial system's internal instability that had led to bankruptcy and financial crisis;Bank of America's internal control mechanism in the crisis failed to show reason or sound ability to cope with, exposed to risk control of defects in the system bug;Information superiority was driven by instinct and self-interest, using of the system loopholes and information superiority, damaged the interests of the information disadvantage, resulted in moral hazard.Realistically, there are some other causes of the American financial crisis: the incentive of overconsuming mode; the effect of radical financial policies of the real estate; the lending institutions relaxing the credit risk management;the rise of the interest rates causing the housing bubble bursting; the excessive abuse of financial instruments which are represented by the assets securitization; lacking of financial supervision and so on.After analysing the causes of the American financial crisis, there are such following revelations on the Chinese commercial banks carrying out the mortgage business: to control the sources of risk, to prevent the credit risk,to eliminate the risk in the bud; to increase the transparency of market, to improve the quality of employees, to preclude financial crime to some extent; to gradually improve the financial policies of the mortgage,to enrich the channels and means of real estate financing; to steadily impel the financial innovation of the real estate,to promote the reform of state-owned commercial banks;to strengthen the early-warning mechanism,to increase the financial supervision and management,to urge the hedging measures carried out correctly;to speed up and to perfect the relevant legal system of mortgage business.