Research On Risk Management Of Personal Housing Mortgage Loan In China’s Commercial Banks

Real estate industry is an important pillar of China’s economy.It has a strong and driving effect on upstream and downstream industries,such as the iron and steel industry,the cement industry,the construction industry,the decoration industry and the house appliance industry.The rise and fall of this industries’ development has a strong influence on China’s economy,finance and people’s livelihood.In recent years,with the stimulation of loose monetary policy and financial product innovation,more and more credit or credit-like funds has flowed to the real estate industry,resulting in high land prices and house prices.The entire real estate market is approaching madness,and the economy bubble springs up.With the rapid development of real estate market,the scale of real estate credit in commercial banks has become larger and the risk of real estate credit has also spread rapidly.Personal housing mortgage loan is an important part of real estate credit of the commercial bank,and the large scale has an important impact on the quality of bank’s credit assets.Therefore,it is particularly important to manage the risk of personal housing mortgage loans.Based on the basic theory of risk management of commercial banks,we uses literature research methods,case analysis methods,observation methods and inductive summarization methods,combined with the risk cases of N Bank Chengdu Branch to study the risk management of personal housing mortgage loans in China’s commercial banks.It mainly analyzes the risks of personal housing mortgage loans from three stages,pre-loan,loan,and post-loan.Also,this paper analyzes the risk from different subjects which are involved in the loan,such as the borrowers,developers,commercial banks,and collaterals.In view of the analysis of the existing risks,this paper proposes corresponding risk management measures and suggestions from three aspects: pre-loan investigation,improving loan approval and strengthening post-loan management.It is hoped that through the discussion of the stock risk cases,commercial banks can learn some lessons.So they can gain effective methods to improve the risk management ability of commercial banks,and provide effective suggestions for promoting the sound development of real estate-related assets of commercial banks.The innovation of this paper is that it analyzes the risk cases of personal mortgage loan which are experienced by N bank,Chengdu branch,and comprehensively analyzes the risk of mortgage loan in all aspects from the perspective of the whole process of credit.It summarizes and learns lessons from practical cases.In response,this paper will further get the corresponding risk management measures in the whole process.Due to the author’s limited writing skill,theoretical foundation and experiences,this paper may be insufficient,the risk analysis may not be deep enough,and the risk management measures may not be comprehensive enough.