A Research On Individual Housing Credit Risk Of Commercial Bank In China

In recent years, with the development of socialist market economy and thedeepening reform of the housing system, some price of house is rising, speculativebuyers are also active, many commercial banks intervene in individual housing creditmarket to expand their business space. Commercial banks gain the profit and the risk isoften ignored at the same time. The real estate credit risk becomes the new point ofeconomic risk once more. This article takes this opportunity to examine the severity ofindividual housing credit risk and prevention measures.To begin with, the paper introduces the related theory of individual housing creditrisk, including the theory of asymmetric information, rational default risk theory, forceddefault risk theory. The risk is divided into liquidity risk, credit risk, operational risk,which take the preparation for the following research on the credit risk of housing in ourcountry. Then, the paper introduces present situation and causes of the individual housingcredit risk in China. This part includes the mortgage business in our country and themortgage risk and risk degree. After that there are three aspects of status about the riskreflected in the macro environment, the borrower and the commercial banks. Secondly, inorder to cope with the risk, Chinese commercial banks need to learn from America andCanada on housing credit risk experience, and put forward the enlightenment to ourcountry. Finally, combining theory with practice, this paper puts forward somesuggestions and countermeasures to deal with risk in our country. From the internalcommercial Banks，we should complete risk early warning mechanism and improve thebank’s internal operational risk prevention. From the outside of the commercial Banks,we should establish the personal credit evaluation system and develop a reasonablehousing credit system.With the continuous development and improvement of the market economy, theimprovement of people’s living standards, and expansion of the housing demand, theCommercial Bank of our country should actively face the risk of housing loan business,to meet various challenges and promote the upgrading of China’s individual housinglevel.