Research On The Risk Of Personal Real Estate Loans

Nowadays, financial risk has become the most significant, and more and more centralized kind of social risk. Financial risk is greatly harmful to economic and social development, because it can not only make an individual financial institution suffer great loss, but also may destroy the stable economic order in a country or region and even the whole world, which thus leads to social turbulence. Personal real estate loan is a financial product that was brought in during the transformation from the welfare housing allotment system to magnetization of housing allotment. This product refers to the loan made by the credit giver to the credit receiver for purchasing personal common real estate. According to the current situation of housing banking development in China, the activities of personal real estate loans fall into three major forms: one of them is personal real estate loan supported by policy; the other is commercial personal real estate loan. With the deepening reform in housing system, personal real estate loan is playing a increasingly significant role and becoming a important instrument employed by residents for housing purchasing. Banks also favor personal real estate loan, which is characterized by low risk and high yield, for it ban help banks to adjust credit structures and improve assets quality. On the other hand, long repayment term and low liquidity yet determines that personal real estate loan is not a low-risk activity in the full sense. Moreover, as the credit environment in China is not good enough, related laws and regulations are not sound, the development of financial products is imperfect. The risk management is not mature and vicious competitions often occur while banks are scrambling for more activities, the risk of personal real estate loans should not be ignored. How to guard against and control risks has not only been the focus of commercial banks' concern, but also become a problem to be settled urgently, which otherwise would affect the further healthy and rapid development of real estateindustry in our country.This dissertation, which researches into risks management of personal real estate loans, is divided in four parts:The first part is the introduction of the theories and knowledge involved in commercial banks' risk management and personal real estate loans.The second part is mainly about the research on the overseas experiences of managing risks of personal real estate loans. The main content include:Firstly, main five risks of overseas personal real estate loans;Secondly, the main two theories and main measures of the foreign commercial banks on dodge the risk of housing mortgage loan, emphasizing the foreign running mode of personal real estate loans, for example, research, loan management and risk management;Thirdly, the research on the risk pre-warning system of the foreign commercial banks on dodge the risk of housing mortgage loan and experiences of their successful dodge and control of risks.The third part is about the present situation of managing risks of individual housing loan in China, especially the analysis and dodging measures on the source of risks of individual housing loan. The main content include:Firstly, the main risks of personal real estate loans in China, emphasizing non-systematic risks: (1) risk from the exploiter; (2) risk from item; (3) risk from debit; (4) risk from hostage; (5) risk from intermediary; (6) risk from bank itself.Secondly, the main measures of controlling risks of personal real estate loans of commercial banks in China: (1) strengthen the research before the loan and guarantee the permission of the loan; (2) strengthen the management after the loan and avoid the risk of personal real estate loans; (3) chose the intermediary with caution and avoid moral risks; (4) dodge risks of the loan by using insurance and guarantee.The fourth section concerns how to deal with risks involved in personal real estate loans. It's divided in three major parts:1.The design of the operation rules in the standardization of personal real estate loans. This par...