Study On Default Risk Management Of Personal Housing Loan In Commercial Banks Of China

In recent years, individual housing loan business of commercial banks in China has been developing fast. However, with the expansion of business scale, the influence of state regulation of the real estate market and influence under external economic factors, the sophisticated requirements for risk management of personal housing mortgage loan is more demanding. How to improve the risk management has become an important issue affecting the quality of the commercial bank personal credit assets, business prospects, the market competitiveness and managerial efficiency.This paper analyzes the status of the individual housing loan risk management in domestic commercial banks, including the data analysis on the development of individual housing loan in four major state-owned commercial banks in Suzhou, the basic operation process of individual housing loans, the existent major risks, risk management content and modes, the main problems in practical risk management and etc. Based on the above, it further takes N Bank as an example, to deeply analyze the default risk management modes and content. Firstly, it compares and contrast the characteristics of centralized management mode, division type and decentralized management mode, to point out the advantages and disadvantages of the centralized management mode. Secondly, based on N Bank’s access standards before loan and management after loan, the paper explains the content of default risk management of N Bank, including analysis on its customer and loan access standards and rating content of the default risk management with the empirical results, with samples finding out the key factors of default risk and methods to obtain this factors, and research on customer characteristics with the empirical results and further analysis on the key points of N Bank’s default risk management after loan. The paper, combining the default risk management theory and the existing problems in the management of risks, proposes corresponding solutions and advice respectively from the active and passive defaults: from the national level, the emphasis is place on speeding up and completion of the construction of individual credit system, and the establishment of personal bankruptcy system; from the perspective of commercial banks, they should optimize customer access standard, realize fine management after the loan, improve customer information data management, promote highly-centralized management mode, focus on governance of false mortgage loan and etc.The ultimate goal of this paper is, through the analysis and research, to provide new ideas and methods to the individual housing loan default risk management of commercial banks, with emphasis on risk pricing strategy, management cost grouping strategy, and management refinement strategy of the access and post loan in risk management.