Research On The Risk Management Of Personal Loan In The Changsha Branch Of China Merchants Bank

Ever since the end of last century, with the fast development of ecomomy, the operationof individual loans has developed rapidly in China. This operation developed sustainably,which shows that the individual loans have set foot into the high-speed period of growth. Atthe same time, because the operation of individual loan belongs to the burgeoning business,the risk management in this field does not have the ready-made model to refer and has notformed the independent whole system by its own yet. In China, the operation of individualloans in commercial bank develops rapidly, which requires a much more efficient system ofrisk management to replace the existing unsuitable management system.We set the personal loan business of Changsha Branch of China Merchants Bank as anexample and seriously discuss in theory and practice, which give prominence to thepertinence and operability. We strive to explore effective countermeasures for commercialbanks personal loans risk management and promote the healthy and sustained and rapiddevelopment of personal loan business, provideing the beneficial reference. In this paper, byanalyzing commercial bank personal loan risk management related theory, we analyse thecurrent situation of the development of Changsha Branch of China Merchants Bank personalloans business risk status. Then from the current situation of personal loan business ofChangsha Branch of China Merchants Bank, from external factors, operation andmanagement, financial instruments and risk quantification management,we analysis riskmanagement problems. To explore the influence factors of three risks, we lay the foundationfor further personal loan risk prevention countermeasures. According to the obtained further,we put forward the countermeasures to the present situation and reason and solution. Finally,we put forward the personal loan risk management countermeasure implementation ofsafeguard measures in Changsha Branch of China Merchants Bank to play a positive role andpromote the sustainable development of Changsha Branch of China Merchants Bank.I hope this research can provides the beneficial reference to the personal loan business ofcommercial banks risk management.