Study On Developing Housing Loans In Bank Of China Jilin Branch

Our country had ceased welfare housing distribution system since 1998, The monetization and market-orient of housing allocation had carried out. But the purchase cost of commodity house is much higher than the cost of welfare house, the ordinary people is difficult to pay the funds that is needed to purchase a house at one time. So loans for ordinary people had generated. With the commercial house market gradually standardized in Jilin Province, and the rigid demand of the residents for ordinary house, makes housing loans business in Jilin Province has a broad space for development. At present, the commercial banks in Jilin Province are still the units based on deposits and loans as main business, the largest source of its operating income is the spread income between deposit and loan. As housing loans business has good asset quality, risk control, high consolidated earnings, rich customer resources, such features make it become the most important personal loan business that financial institutions focus on to develop for a long time.With the development of housing loan business in financial Institutions of Jilin Province, competitions among commercial banks have been intensified gradually. Bank of communication,Everbright bank have involved, Spd bank and China merchants bank all have made layout on the mortgage business in Jilin province. Facing the fast development among financial institutions on mortgage business, the inherent business processes,the product policy and the internal management in Bank of china have no longer met the needs of business development, the problems already existed have revealed gradually, And has became a bottleneck of the bank that hard to break through during the development of housing loans business. How to win a place and win customer in the fierce market have became an important topic that the bank must pay more attention and study during the development of housing loans business.The housing loans are divided into housing provident fund loans and commercial housing loans by source of funding. The housing loans business in this paper is refer to the financial institutions lent to natural persons with their own funds to meet the needs of purchasing a house, the commercial individual housing loans with the real estate development loans together constitute an important source of construction funding in the real estate industry. Commercial housing loans business started since 1998, after 2000 it developed violently. State-owned commercial banks such as Industrial and commercial bank of china, Agricultural bank of china, Bank of china and China construction bank predominate in this field, and create 90 percents market share in Jilin province. Until the end of 2009.6, the housing loans that allotted by the four major state-owned commercial banks had reached 223.8 billions in Jilin Province, turned out to be 78.52 percents among personal consumption loans.The housing loans business in Bank of China Jilin branch had developed since 2000,until the end of 2009.6,the housing loans had reached 33.23 billions, Share in the four major banks accounted for 14.85 percents, and in the third place after Industrial and commercial bank of china and China construction bank. Market share comparing with the Industrial and Commercial Bank of China which ranked first is backward 26.93 percents, comparing with China construction bank which ranked second is backward 26.30 percents, comparing with the achievement in the end of 2008.9 is backward 2.63 percents. Such data reflects that the dominant position in housing loans of Bank of China Jilin branch had significantly decreased and the market share is low and declining. The fact can be seen simultaneously through date analysis, the backward of housing loan market share in Bank of China Jilin branch has became the main reason that lead to the backward of personal loans in Bank of China Jilin branch, among these business, the backward of the first-hand housing loans is the principal reason that lead to the backward of backward of housing loans in Bank of China Jilin branch .The market share in the same industry is the important indicator to measure the bank's competition, so the market share of housing loans has became the focus that the leadership of bank pay more attention to.The internal factors that affect the development of housing loans mainly include product design, marketing and sales strategies, process design. Now, Bank of China Jilin branch has some disadvantages, such as uncompetitive products, cumbersome process, single marketing channel, lacking of professional team-building in the operation and management mode. The housing loaning business doesn't have advantages in the same industry, to a certain extent ,these disadvantages have hampered the efficient development of housing loads business. According to the development of housing loans business in Bank of China Jilin branch, we should take a careful analysis to find the causes, and learn advanced experiences from brother banks and units, strive to be innovative in management measure to meet the development needs of current business, then achieve dominance place in the tough competition of the financial market. Strategy recommendations on improving market share of the housing loans business in Bank of China Jilin branch:1. Strengthen professional team-building of housing loans. using human resources to enhance the market competitiveness of housing loans business. Its core tasks are the construction of four teams: marketing manager, account manager, approving, risk manager.2. Acceleration the Management System Construction of housing loans. strengthening market research, perfect market positioning, step up publicity, promote a new marketing model, expand marketing channels, improve the level of sales management , increase the refinement of sales management. Proposed to establish new marketing patterns base on "straight-off-style" mainly and "between the passenger-style" as supplement, take the transition of Bank of China's branch as an opportunity, make full use of the existing stock of business networks and customer resources to enhance the sale capacity of product, expand internal marketing channels of housing loans, setup the operation idea that adding the brand value of bank of china to the housing loans business.3. Speed up the product innovation of housing loan business. propose that product design would be based on customer needs correspondingly, rather than be designed to facilitate self-management, researches should be made to design products and formulate policies according to customer's needs. Strives to achieve the transition from same technology and popularity to hierarchical and specialization gradually. Based on traditional primary and secondary housing loan products, we can add transfer, addition and circulation to the basic products, trying to innovate the methods that we used to decide the interest rate, the way to make payment and mortgage in order to satisfy the personal financing needs of high-ranking customers under the background of funds safe.4. Optimize the way of housing loans management, to make use of the linkage effects of wholesale and retail loans, further improve the operation process of housing loans, establish and perfect the mechanism of incentive and punishment, promote the development of housing loans business through differentiated services and market segments, put forward the closed management model of real estate loans development, promote the housing loans development through real estate exploit loans, optimize the application process of cooperation project, break through the traditional handle process of individual housing loans that deal with it as whole, replace it with one that taking the cooperative company as a basic unit to make application, introduce automatic dealing model of standard housing loans to improve work efficiency. Individual housing loan is such a product that it can use kind of unit to measure the salesmen's labor, by set up measurement indicators and scores we can understand the leader's intention to encourage the development of low-risk self-use housing loans, the expansion of sales channel and product innovation.