Research On Personal Credit Business Risk In China Construction Bank (CCB)

After joining WTO in2001, especially the end of financial protection transition periods in2006, the commercial banks in China were facing the increasingly fierce market competition, accompanied by changes in the domestic macroeconomic situation in recent years, the commercial banks not only small commercial banks, were paying more and more attention to the management of Personal Credit Business gradually, the major commercial banks have taken the Personal Credit Business as a strategic business. The Personal Credit Business has some characteristics, such as large total volume, small single volume, risk decentralization and the risk management is more complex. Housing Credit is the most important component in personal credit business types, in recent years, along with the policies changes in the real estate market this credit risk has the trend of escalation. Especially, the spread of global financial crisis happened in USA in2007gives us a lot of warning. China Construction Bank (CCB) is the traditional housing credit bank and the Housing Credit Business volume was in the top rank compared to other commercial banks. Unfortuatly, there are many problems in the process of risk control, so this paper taking the the risk control of Personal Credit Business of CCB as research target has a strong practical significance.In this paper, we take the risk control of Personal Credit Business of CCB as the research target, and take the basic theory of Information Economics, Finance, Institutional Economics, Management as research foundation, use the method of case analysis, comparative study of law, draw on domestic and foreign research achievement of theory and practice, analyse the development, innovation and the current situation of the Personal Credit Business in CCB. In light of the different business types, we analyse the common causes of Personal Credit Risk of CCB from three aspects, including system risk, borrower group differences and other risk types. Then, we analyse the individual causes of Personal Credit Risk of CCB from four aspects, including market fluctuations and borrowers’abilities of repayment, information asymmetric and subjective repayment willingness, moral hazard and risk of law and policy. We analyse the basic risk control methods and the existing practice problems in Personal Credit Business risk management of CCB and put forward relevant macro and micro prevention countermeasures to the common and individual risk of Personal Credit Business.