The Risk Management Of Our Commercial Bank's Personal Housing Mortgage

After 1998, along with the work, which is the symbol of country housing system reform, as the financial system reform is further deepen, our country commercial bank's business of the personal housing mortgage loan become the most high quality asset of the all business. Through the rapid development of the business, the business of personal housing mortgage loan is becoming more and more important. With the scale of business growing, the risk of the personal housing mortgage loan is exposing in time. At 2007, the subprime mortgage crisis makes our commercial bank to learn that the risk of the personal housing mortgage loan is more important than before. Nowadays, all commercial banks in China have a personal housing mortgage loan business as its focus the development of business assets. However, due to China's commercial banks personal housing mortgage loan business start-up time is very short, and the relative lack of experience in risk management and risk identification, risk quantification, risk prevention and control of technical deficiency, combined with market and credit deterioration of the environment, commercial banks before making personal housing mortgage loans on the management of risk is no longer adapted. Therefore, Chinese commercial banks need a comprehensive system of personal housing mortgage loan risk management system.In this paper, empirical analysis and data analysis methods is used on our personal housing mortgage loan risk, risk management and the causes of the current situation of a more in-depth analysis. In developed countries or regions of individual housing mortgage loans made in risk management detailed summary of experience, mainly the United States and Hong Kong, for example. By summing up the experience of advanced risk management, on the basis of our concrete conditions, with a technical and institutional point of view, we should decide to use which policy recommendations to improve our personal housing mortgage loan risk management puts forward.First of all, this paper is speaking from the basic concept of personal housing mortgage loans on the definition, characteristics, classification and a brief overview. Next, we delimit the personal housing mortgage loans'main risks by qualitative analysis. It provides a theoretical basis the commercial banks personal housing mortgage loan risk management.Secondly, this paper make a detailed description of China's commercial banks personal housing mortgage loans face the risk and risk management problems. This paper is beginning with our personal housing mortgage loan business development stage, and attributed the cause of personal housing mortgage loans risk to four macroeconomic factors, for example, the real estate market factors, the borrower's own bank management factors and factors. Next section, we analyze the status of risk management of our personal housing mortgage loans and the three major aspects in problem of risk management. It also provides further policy recommendations to improve management level of personal housing mortgage loan risk management.Thirdly, we summarize the risk management experience of countries that the personal housing mortgage loan risk management is more advanced to find success of its risk management. This section is based on the successful personal housing mortgage loan risk management experience of Hong Kong and the United States. We discuss the personal housing mortgage loans in the United States primarily from four aspects, as credit risk management, risk management, collateral risk management, pre-payment risk and asset securitization (asset liquidity risk management). We discuss the personal housing mortgage loans risk management in Hong Kong's experience mainly form pre-credit risk control mechanisms, intermediaries involved in mechanisms and management of operational risks.Finally, we put forward the policy recommendations to personal housing mortgage loans. This policy's propose is to reduce the transaction costs described in terms. According to North's theory, efficient institutional arrangements and institutional structures can effectively reduce the transaction costs. In this paper, we put forward the targeted policy recommendations form two aspects of systems and technology. The recommendations on the institutional level mainly involve four aspects: the improvement of individual credit system, risk-sharing system, credit risk control system and the securitization of loans. The recommendations on the Technical level mainly involve accelerating the level in personal credit rating, improving risk management techniques and strengthening the capacity of risk warning.