A Discussion Of Prevention And Management Of Commercial Banks' Individual Housing Mortgage Loan Risk

Since 1985, the start of housing mortgage loans in commercial banks in China, the amount of mortgage loans has seen continuous increase. More and more people start to buy commercialized houses, especially in recent years when the individual housing market has been rather active as cities' growth is fastened. By nowadays, individual housing mortgage loan has become a new increasing point, which helps to promote consumptions, boost economy, regulate banks' loan structure and bring interest to banks. China's individual mortgage loan business has seen great growth, but within the growth various risks remain to be seen, such as market risk, interest rate risk, legal system risk, guaranty risk, credit risk, etc. It is a great influence on the healthy growth of individual mortgage loan business whether these risks can be recognized and properly dealt with. By analyzing the risk's performance, this thesis aims to find the cause of individual mortgage loan risk in China's commercial banks. Besides, based on the effective examples of typical countries and districts preventing individual mortgage loan risk, this thesis discusses the prevention solutions for China's commercial banks and offers a reference for the growth of the individual mortgage loan business in China's commercial banks.This thesis firstly introduces the growth of China's real estate market and individual housing mortgage loan business, and then points out the potential risk in current individual housing mortgage loan business, putting forward the focus discussion and direction of this thesis-the risk and its prevention in individual housing mortgage loan. Secondly, this thesis elaborates the kinds and performance of individual housing mortgage loan in China's commercial banks. In conclusion, a risk-prevention pattern is brought forward for the solution of individual housing mortgage loan risk in commercial banks.