The Legal Prevention Of Real Estate Loan Risk Of Commercial Bank

From the acquisition of land for real estate to loan repayment, every processes of real estate loan are greatly related with law. Along with the continual change of the world's economy and politics, the risks of real estate loan of commercial bank are increasing. The most remarkable risk of real estate loan that the Commercial Banks of our country will face to, are market risk, operation risk and legal risk. This thesis in-depth analysis the law and measures that the Commercial Banks depend on for preventing financial risks. Against above three points, this thesis makes a detail and all-sided analysis on the risk of real estate exploitation loan and individual housing loan of Commercial Banks. Being as one of the main measures, Legal framework is constructed in order to prevent the risks of Commercial Banks. The legal framework of our country is on the basis of The Law on People's Bank of China, The Law on Commercial Banks and The Law on Banking Regulation and Supervision, Lending General Provisions, Guidelines for Risk Management Real Estate Loans of Commercial Banks and laws and regulations issued by the State Council, management index issued by the People's Bank. Though having be formed, legal system isn't perfect. It is quite inadequate for these law and Management system to prevent the risks of real estate loan in practice. Our Credit Law system and Guarantee Law are deficient, and there are also some conflicts of law and some are principled and lack of operability. It costs too much for commercial bank to carry out the credit right of action. Therefore, after sufficient Analysis on the limitation of the legal prevention system of our country, and the related legislation and practice of western country and International Finance Corporation (IFC), this thesis brings forward that it is necessary to optimize the banking supervision law and internal control system of commercial bank to prevent operation risk. And it is necessary to step on the juice of legislation and improve legislation level to optimize our real estate loan law system. This thesis brings forward some beneficial supposes on Legal prevention system of the real estate loan risk of Commercial Banks of our country.