Personal Housing Loan Risk Analysis And Prevention

Since the end of the twentieth century, with the ending of China Housing Welfare System, the real estate industry has been developing rapidly and the individual housing loans emerge at the right time:By mortgaging the purchased houses as collateral and with the guarantees providing from the real estate enterprises, bank loans to property buyers, so homebuyers can early access to their new-purchased houses. For homebuyers, real estate development companies and banks, this type of mortgage loans are favorable. The individual housing loan has becoming our country residents purchasing houses financing mode and the domestic commercial bank profit growth point, so the real estate market is prosperous. Bank C individual housing loan business has achieved a leap-forward development:In2006, the loan balance was about40billion Yuan only. But by the end of2011the balance had been increased to about400billion Yuan. For almost two years the balance remains around35%high growth.At the beginning, the individual housing loan was considered as relatively low risk and continuing profitability credit products, so commercial banks focus on the development of the business. But the commercial bank risk management techniques and measures are far from perfect. From the practical point of view of the Bank C individual housing loans, the loan business still has many risks. Appearance of false loan, residential flats repeatedly reminds us that the individual housing loans are not the absolute low-risk credit products. While the real estate market’s uncertainty is gradually increasing, the risk of the loans follows the suit.For the background mentioned above, I choose the risk analysis and prevention of individual housing loan as my research direction. Learning from domestic and foreign individual housing loan risk management theory research, combining long engaged in Bank C business development status, this paper tries to tap the cause of the risk and explores prevention and countermeasures to Bank C individual housing loan risk. From a deeper sense, I hope this study is beneficial to the sound operation of commercial banks loan business.