Risk Management Research Of Individual Housing Loan In China Construction Bank

As the welfare-oriented public housing distribution system has been cancelled in 1998,the monetization of housing distribution system has been put into practice; meanwhile,the real estate market in China comes forth to persistent boom.The individual housing load of merchant banks has also endured great development during the 10 years in which the real estate market has developed quickly too.In individual housing load,with the balance of 2.7 trillion Yuan in 2007 has 142 times as much as 19 billion Yuan in 1997.Meanwhile,banks augment the promotion of the individual housing load to enlarge their share in the market.China Construction Bank maintains the leading status and superiority during the drastic market competition,who can take the first place in it.Thought the housing price grows up speedy,the real estate lean to hot.As a result,the government issues a series of macroeconomic control measure including increasing the benchmark interest rate,the load rate and first payment proportion when buying the second set house.These measures bring important influence to the real estate market,and it becomes a hard test to the asset quality of Construction Bank. The individual housing loan of Construction Bank faces some new risk factors,such as the risk of fluctuation of the real estate market,the ever increasing pressure of compensation,the risk of fake load,the credit risk of housing agencies,the operation risk of merchant banks,the liquidity risk and so on.Benefit from many years' experiences of individual housing load management,Construction Bank gains many advantages,which include advanced risk management ideal and framework,powerful network system and audit measures,technical operation flow,standardization collect system,and the experimental experiences of the Securitization of housing mortgage loan.But on the other side,the bank exists some disadvantages too,such as the inadequate of macroeconomic research,the laggard examine and approval means,the lack of encouragement in the compress of non-performing loans and the diathesis of the staff needs to be improved.On the profound analysis of market environment,risk level,advantages and disadvantages faced by individual housing loan of Construction Bank,combing the caution meaning of American sub prime mortgage,the thesis puts forward five basic theories of risk management of Construction Bank,which are risk identity theory,risk elusion theory,risk reduction theory,risk transformation theory,and risk resolving theory.At last,the thesis raises eight mainly concrete measures of risk management of Construction Bank.