Risk Management Of China's Stock As Security For Loans

In recent years, as the global financial market fluctuates more tempestuously, the bank is becoming more and more inclined to decrease credit loans in order to avoid the credit risk and assets-mortgage loans are getting more and more popular. In western nations such as the United States, real estate mortgage loans have already occupied the biggest part of the loan market. Other forms of asset-based lending such as financial asset-based lending also have gained a lot of development. Stock mortgage loan which is one form of financial assets-mortgage loans faces more risk, compared with common loansThis article connects the calculation of mortgage ratio and risk of loans by using VaR. Through analyzing the characteristics of risk of the stock mortgage loan and the liquidity of the stocks mortgaged, this article works out a reasonable method to calculate the mortgage ratio and a standard of maximum stock mortgage loan amount. This article also provides some guidance for the management of the risk of stock mortgage loan. Based on the previous research, this article improves the methods of VaR and ES and uses L_VaR to control the liquidity risk and the credit risk.Besides the foreword, this article is divided into four chapters.The first chapter introduces the background, present situation, problems, role and prospect of stock mortgage loan of our country.The second chapter firstly offers a definition of stock mortgage loan and introduction of the relevant laws about stock mortgage loan. Then, this article analyzes the risks of stock mortgage loan and provides some basis principles to manage those risks.The third chapter analyzes the advantages of VaR when it is used in the calculation of mortgage ratio of stocks, introduces how to use...