A Research On Guarding Against Interest Risk Of Home Mortgage Loan In China

In recent years, along with the rise of the housing prices, china's home mortgage loans have been expanding into high-quality commercial banking business. However, the U.S. subprime mortgage crisis which was caused by the interest rates and falling house prices made us have to re-examine the risks of housing mortgage loans, especially the interest risk. Since the development of domestic financial markets is not perfect, the lack of Derivative trading instruments which is used for interest risk management ,coupled with our benchmark interest rate have been controlled by the central bank, the interest risk's influence on commercial banks'home mortgage loans have gradually emerged. And along with the deepening of China's opening up and market-oriented interest rates, coupled with the uncertainty of central bank's interest rate policy, this influence will be more and more apparent. Therefore, study commercial banks' mortgage interest rate risk, is very useful for banks to raise awareness and strengthen on the interest rate risk and control it.This article is divided into five chapters. The first chapter is an introduction, a brief introduction of the significance of this study,current situation and methods. The second chapter is the theory of this article, it describes the theory of interest risk in which was published by Basel briefly. The third chapter analyzes the interest risk's current situation,causes and effects of home mortgage loan, it describes the Status of China's interest risk from the re-pricing of risk, prepayment risk, basis risk, yield curve relative four aspects on the basis of the definition of interest risk, analyze the causes and effects risk of home mortgage loan's interest risk, and the main reason includes the lending institutions and their product model are simple,the banks' shortage of self-distribution and pricing rights on the loans, the bank don't have enough ability to judge the pledged assets and the personal credit, the secondary market of personal housing mortgage loans is still in its infancy, the shortage of talent on interest risk management five parts. The main contents of the fourth chapter is home mortgage loan's interest risk and U.S. financial crisis, analysis the interest risk of home mortgage loan in china, explain the measures the United States deal with the interest risk of home mortgage loan in subprime crisis, proposed the inspiration to china. The fifth chapter the preventive measures for home mortgage loan's interest risk, including promoting the innovative of mortgage products, relax the control of the Commercial Banks' interest risk, To develop a professional real estate appraisal agencies, take use of the capital market to avoid interest risk, Training high quality personnel on interest risk management, controlling credit threshold Strictly and Charge Liquidated damages on the people who repay early.