Risk Analysis And Prevention Of Individual Housing Mortgage

As a main tool of housing finance, individual housing mortgage accounts for a great proportion of the bank's credit line. Due to its large amount and long payment term, financing institutes face great systematic and nonsystematic risks in the mortgage market. To operate financial transactions smoothly, it is essential to analyze the risks scientifically and improve risk prevention mechanism of the primary market, which is also the premise of secondary market working effectively. With the risk analysis and management technique quantified and modeled gradually, risk control becomes more and more objective and scientific. Whereas, since china's mortgage market is still on its primary stage, systemic theory study on this field is immature yet.The thesis introduced the main modes of international housing finance and analyzed the four important risks such as credit risk, rate risk, fluidity risk and prepayment risk with qualitative and quantitative methods. Learning advanced experiences from developed countries and aiming at the statues of China' housing finance market, the thesis tried to improve china's risk prevention mechanism by putting forward three propositions of building personal credit system, perfecting mortgage insurance mechanism and developing mortgage backed-security market, which are helpful to control and prevent risks of China's mortgage market.