Individual Housing Loan Risk Control

Since the reform of capitalization of housing distribution in late 1990's, China's economy has experienced continuous and rapid development, urban residents'Personal Disposable Income greatly increased, urbanization level speedily promoted. With deeply housing reform, China's Real estate gains remarkable progress, It already has been the important part of gross domestic product (GDP).Simultaneously, as a typical capital intensive industry, business operations between real estate and business banks have been closed connected. As the house price is continuously increasing, business banks look the personal housing loan as high quality assets and important business. And because of the rigid demand of domestic houses hasn't been satisfied, popular floating capital speculation from foreign and domestic person or party, house price of major domestic city has been far away from houses'practical value, economic risks for real estate have progressively emerged. Therefore, it has been a to-be-solved subject to business banks how to prevent and manage default risk.This paper chooses how to prevent and manage housing loan risk of business banks as research objects, analyzes credit loan major risks of domestic business banks, summarizes the existing problem and root cause. This paper illustrates the case happened in Industrial and Commercial Bank of China, Xianning branch, analyzes the process of individual housing credit loan management used in this branch, indicates major problems and deficiencies existing in risk management scope of this process,(1) Lack of risk conscious; (2)There're actual operation deficiencies existing in pre-loan investigation and management after loan; (3)Lack of risk evaluation mechanism in the whole process; (4)Lack of capacity of dealing with Non-Performing Assets; (5)Lack of a team made up of high quality loan officer; (6)Lack of credit loan products. This paper combines basic theories of risk management,combines advance theories and specific measures used by major countries for housing loan risk control, introduces following counter measures for real estate credit loan risk control of business bank, (1)Build complete personal credit system; (2)Build robust risk responsibility mechanism; (3)Build anticipation mechanism for macroscopic policy analysis and horizontal communication mechanism; (4)Build and mediate channel of house mortgage processing; (5)Standardize internal operation process of bank, build professional team; (6)Enrich loan production category.