Case Study For Supervision Of Personal Mortgage At Industry And Commercial Bank Of China Of G City

In the mid 1980s, after the State Council promulgated policies of residential commercialization and capitalization of housing distribution, Chinese real estate industry has experienced three stages:fast development-depression-the rapid growth. Now, the real estate industry has become a basic industry of the national economy. According to the national bureau of statistics, real estate investment was up to 16% of GDP in 2013.Together with the great development of real estate, personal mortgage loan, as the main resource of Chinese real estate market, has been developed very quickly and gradually occupies an increasingly large proportion of the state-owned commercial bank credit business. Take the Industrial and Commercial bank of G city for instance, in 2008 personal housing mortgage loan interest income accounted for more than 60% of personal credit income. The data indicates the increase of expenditure in purchasing real estate, and this expenditure accounts a huge percentage in family income. Once personal income drops down, part of the mortgage would probably become bad loans. Therefore, Chinese government should put the supervision of personal real estate loan business on top priority while supervising the state-owned commercial bank credit business. As it involves numerous number of lenders and trivial regulation details, the difficulty of supervision becomes every bigger. This thesis is based on the theory of public interest and the theory of bank risk, using questionnaire, comparative analysis, case studies and observations; it takes the personal real estate loan of the commercial bank of G city for observation, to realize a systematic analyze of the personal mortgage loan business supervision. In terms of such observation, there are several issues, such as the state-owned commercial banks cannot effectively guide the personal housing mortgage loans with the People’s bank monetary policy; the CBRC cannot well operate its own functions; the inefficiency of internal control mechanism of commercial bank of G city. The reasons of these issues are numerous, such as:different segments supervision led to unclear boundary of supervision limits, lack of clear prediction and management mechanism of personal house mortgage, lag of the supervision legal system, loophole of the internal risk control system of commercial bank of G city.On this basis, we propose four suggestions to improve our personal housing mortgage loan business supervision of state-owned commercial banks:First, the weakening of the administrative functions of government intervention, well positioned in government regulation of behavior; second, establishment an integrate internal governance mechanism of the commercial bank; third, relevant laws and regulations; fourth, optimization market discipline, strengthen the relative supporting system construction.