Study On Credit Risk Management Of Real Estate For Guangzhou Bank Of Dongguan Branch

On February 2,2016,the People's Bank of China released the Notice on Issues concerning the Adjustment of Individual Housing Loan Policies to cut down minimum down payment ratio for commercial individual housing loans and effectively support real estate destocking.However,since April 2017,China Banking Regulatory Commission intensively launched a series of strict regulatory policies to avoid illegal flow of bank credit capital to the real estate industry,such as the “three types of arbitrage,three types of violations and four types of inappropriateness”,which led to the most stringent regulation of all time.Affected by such policies,the amount of credit funds that commercial banks can invested in the real estate industry becomes extremely limited,thus resulting in increasing risks of the real estate industry.Therefore,credit risk management of the real estate industry must be enhanced to promote healthy development of the real estate market.Through analysis,it is discovered that(1)the asset-liability ratios of domestic real estate enterprises are relatively high;(2)the degree of real estate loan concentration of domestic commercial banks is high;(3)domestic real estate enterprises have limited direct financing channels and overly rely on bank loans;(4)the real estate credit risk assessment technology of domestic commercial banks is outdated;and(5)there exist some problems in the current real estate credit risk management of the Dongguan Branch of the Bank of Guangzhou,including such internal problems as lax “three examination” of loans,incomplete risk management system and internal control system,weak legal consciousness of employees and such external problems as false financial statements of borrowers,information asymmetry and ethical risks.Aiming at above problems,an in-depth study is conducted in this paper to put forward an improvement scheme for real estate credit risk management,that is,realizing an optimal risk management program through perfecting internal control system and risk management system,improving risk assessment technology,introducing an evaluation index sheet for credit rating of project loans and a Z-Score evaluation system,enhancing the cultivation of the compliance awareness of employees and improving assessment mechanism.Meanwhile,supporting measures and evaluation methods are put forward in this paper to ensure the implementation of the risk management program.At last,the outlook of problems to be studied is provided,including(1)enhancing the construction of the team of risk management professionals;(2)adjusting the credit structure of banks;(3)encouraging financial innovation in the real estate industry.