Risk Management Of Consuner Credit In Chinese Commercial Bank

For a long time, loan business from our commercial banks benefits primarily enterprises and companies, while leaving consumer credit business almost blank. In the recent years, with growth of economy and evolution of financial operations, consumer credit business has been developing dramatically. The benefits of developing consumer credit business are getting well known to the public, and no one can underestimate its powerful potentials. However, there do emerge signs of risks along with its rapid growing. Commercial banks should keep aware of and prevent the risks.At the same time, banks, government and related organizations should cooperate effectively, and establish as soon as possible a risk preventive system for consumer credit.Until this is done could we achieve the win-win target of heightening economy while preventing financial risks. The first chapter of this paper briefly introduces the significance on our economy to develop consumer credit business, and its current situation in our commercial banks. The second chapter discusses the mechanism of how Chinese consumer credit risks emerged and evolved. In this chapter, the causes leading to consumer credit risks are grouped into five categories, along with abundant cases examined accordingly. Based on first two chapters, the third chapter elaborates the evaluation, prevention and resolution of consumer credit risks. With reference to other existing achievements and experiences in related fields, an evaluation model for consumer credit risk is proposed here. In addition, the chapter proposes corresponding approaches preventing and resolving consumer credit risks triggered by any of those causes listed in chapter two. Helpful discusses on securitization of housing mortgage credit is included at the end of this paper.