Study On Credit Risks In Individual Housing Loan Of Commercial Banks

On the study of the credit risks and risk control problems existing in the individual housing loan of the commercial banks in China, this thesis puts forward some countermeasures. First, the thesis elaborates theoretically the source of credit risks of commercial banks' individual housing loan and analyzes the content, targets, principles and procedure of credit risks management of commercial banks' individual housing loan, then demonstrates the formation mechanism and credit risks' factors, as well as the credit risks control problem and its source existing in the individual housing loan of the commercial banks. After this, a system of credit risks management of commercial banks' individual housing loan is established, which starts from the banks themselves and regards commercial banks as the main body. Finally, some measures are suggested to improve the exterior environment of credit risk management of commercial banks' individual housing loan. The main conclusions and policies are as follows:1,conclusions:(1) Various factors affect and decide the credit risk of commercial banks' individual housing loan, which can be categorized into four groups: borrower characteristics, property characteristics, loan characteristics and regional characteristics. The credit risks' factors within the first group include the stability of the job, deposit balance variety rate, the return notes, and so on. The credit risks' factors in terms of property characteristics include the value of the house, the unit price, and the like. The credit risks' factors with loan characteristics include deadline of the loan, total amount of the loan, the rate of loan balance to gage value, and so on. The credit risks' factors with regional characteristics include the house price index, the unemployment rate, the interest rate, and so forth.(2) The favorable internal risk management is the kernel of credit risk management of commercial banks' individual housing loan. But the imperfect corporate governance structure and the noneffective incentive-restraint mechanism cause the credit risks management theory of commercial banks being relatively out-of-date and the internal control system being not strict. Moreover, the credit risks management technology of commercial banks' individual housing loan is quite old, lacking effective methods to guard against, transfer and handle with credit risk.(3) The imperfect external environment is also the obstacle of credit risks management of commercial banks' individual housing loan, including the sluggish development of individual credit system and housing security system, the unsound equity transaction market of property and mortgage based securities, the low degree of monetization of resident income, lacking transparence.2,Suggestions (1) To establish united and canonical individual credit system. A perfect individual credit system can help commercial banks have the information of borrowers, effectively overcome the existing problem of information dissymmetry between borrowers and banks and thus lower credit risk of commercial banks' individual housing loan. The establishment of individual credit system includes perfecting individual credit record registering system to build the united credit information data base of the whole nation; building effective mechanism to punish those who break their words; enhancing individual's credit consciousness and the ability to forecast credit risk.(2) To Improve social housing security system, guarantee system and insurance mechanism of individual housing loan. Since sponsion and mortgage at all times are the effective methods to reduce credit risks, perfect social housing security system can reduce the charges of commercial banks in the process of dealing with mortgage houses, and thus makes mortgage be a real effective means to reduce credit risks of commercial banks. We should establish a guarantee system of individual housing loan which is predominated by government's policy guarantee and takes commercial guarantee as complementary. At the same time, a perfect insurance mechanism of individual housing collateral loan, with active housing loans insurance markets providing various innovative insurance products should be established.(3) To actively promote the construction of related market system. The credit risks management of commercial banks' individual housing loan needs the support of the markets of second-hand house and the secondary market of individual housing collateral loan. For this purpose, we need to push forward the work of mortgage based securities of individual housing loan to accumulate experiences unceasingly and popularize it finally .The government should adjust the supply and demand of second-hand houses, strengthen the management of transaction, give support of finance and fiscal policy to the development of second-hand house market.(4) To accelerate the legislation related to individual housing loans. The imperfect legal system about individual housing loans, which is a main obstacle in the management of credit risks of commercial banks' individual housing loans, makes commercial banks have no way to control credit risks of individual housing loans effectively. At present, we should advance the legislation of individual credit system and improve individual housing loan transaction, together with the related sponsion, mortgage and insurance regulations.(5) To expedite the supporting rules and regulations related to individual housing loans. Supporting system mainly includes individual bankruptcy system, individual property declaration system, individual fundamental account system and social housing security system. The individual bankruptcy system and the social housing security system can make banks effectively get the repayment and reduce the loss, individual property declaration system and individual fundamental account system can help banks get to know immediately the financial status of borrowers.