Risk Management Of Domestic Commercial Bank Consumer Loan

Due to the economy development and system reforming in China, the annual income of the urban residents has increased rapidly. They have ability to consume high-valued goods through commercial bank loan.Consumer loan is just a prime in China and many risks have not been known yet. Domestic commercial banks risk management of consumer loan business needs improving. This paper explores risk management strategies based on consumer loan situation compared between international and domestic banks.This paper is altogether composed of five parts. Chapter 1 mainly introduces the consumption theory of Modigliani' s '''life-cycle hypothesis ", and proves that Chinese residents consumption coincide with the model of the "life-cycle hypothesis". Then deduce the Chinese residents' consumer loan model from their actions of dealing assets. Chapter 2 analyzes the consumer loan system in USA and its advantages which we can make use of. Chapter 3 elaborates consumer loan business and its risks in China currently. Chapter 4 discusses the strategies of consumer loan risk management. Chapter 5 makes policy suggestion in order to have better financial environment for consumer loan.