Personal Mortgage Loan Risk Control

With the entry of WTO, China opens RMB market to foreign banks. All kinds of bank products are launched to domestic market. Personal unsecured loan (PUL) will be known as one of them. For the government, it is helpful for enacting right policy with researching this product. For local commercial banks, it is important to establish risk control system if they want to compete against foreign banks in this field.Personal unsecured loan is based on personal credit. Under current market environment, it should consider real situations to set up risk control system. One is that measures making include many departments, long and complex process. The other is lots of factors could influence the measures making. This article studies a foreign bank's experience, analyzes different factors and brings up some suggestions for establishing personal unsecured loan risk control system. The research results are summarized as follows.Firstly, it introduces risk control measures of a bank's personal unsecured loan products and analyzes the shortages of these measures and the reasons.Secondly, it analyzes outside influencing factors through comparing economics, law, credit conditions of China and USA. Study some inside influencing factors by analyzing some measures which are implemented in mature market by globalized commercial banks. Give some directions for problem solving.Thirdly, it brings up some suggestions for establishing our country's personal unsecured loan risk control system from outside to inside after a full consideration of studying results. For example, improve legal environment, set up credit scoring model etc.The results are generally applicable because its research is combining the facts with theories. The government could realize the market requirement and make suitable policy. The local commercial banks could take as reference when they launch personal unsecured loan products and set up risk control measures.