Study On Credit Risks In Individual Housing Loans Of Chinese Commercial Bank

As the deepening of the urbanization process and reformation of housing system of both rural and urban areas in our nation,the real estate industry,as one of the pillar industries of national economy,has get a quick development in recent years. In this context, the individual housing loans emerged as new financial products. As a result of individual housing loans with low-risk, high-yielding the advantages, but also by national policy to support and encourage, the commercial banks have entered the market, therefore, it has rapid business development. However, affected by the capital market shocking and the fall in asset prices, a number of major banks in individual housing loans shrinked sharply. The rate of Non-performing loans rose, and the risk exposure gradually began.Credit risk is the main business risks faced by banks. The outbreak of the Subprime mortgage crisis in the United States sounded the alarm foe the commercial banks. Looking into the credit risk of individual housing loans and the trigger mechanism, the establishment of an effective risk prevention mechanism and the transfer of major commercial banks become to the major issues.Reviewing the development of the China's real estate market and the individual housing loan , comparing personal features of the domestic and foreign commercial banks in housing loans and the business environment, the thesis brought forward the main character and the problems in current Chinese individual housing loan business; By use of the function model, analyzing the type and mechanism of the credit risk faced by the individual housing loans business and bring forward a variety of risk avoidance strategy; analyzing the causes of the subprime mortgage crisis, lessons learned; Based on the above analysis, the thesis will put forward the precaution system for individual housing loan credit risk which contains both the environment construction from the outside and the management improvement from the inside the commercial bank in China.Due to the big difference between the China and the United State in the structure of real estate market, the concept of commercial banks to guard against credit risk, as well as external business environment. The article took full account of the actual situation in china. The thesis analyzed our advantages and disadvantages of the United States, prompted that China's commercial banks should carefully learn from the experience of mature markets abroad.