Study On American Subprime Mortgage Crisis And Its Enlightment To China

In February of 2007, the second largest American subprime loan institution, New Century Financial Corporation, proclaimed a deficit in the forth quarter of 2006 and subprime mortgage crisis emerged. In the following one year and more, subprime mortgage risk was completely exposed with housing mortgages and loan corporations close to bankruptcy, hedging funds forced to be liquidated and investment banks proclaiming their losses. Moreover, commercial banks and insurance institutions also suffered great loss and global stock market declined in response. Trust risk aroused by subprime mortgage crisis, eventually evolved into a global financial crisis. Although China's economic dependence on exports higher, our government take timely policy to stimulate domestic demand, coupled with China's capital account can not be completely free convertibility, the subprime mortgage crisis has limited impact on our economy. To a certain extent,the outbreak of the subprime mortgage crisis make our commercial bank recognize the importance of strengthening risk management of individual housing mortgage and promoting the healthy development of mortgage-backed securitization.At the same time, it provides some experience in financial supervision, that our country should continuously improve to promote financial supervision in order to promote the coordinated development of economic and financial.In this paper, from the start with the evolution of the subprime mortgage crisis, the structure of the article is arranged by raising the question,parsing problem and settling the problem.The paper is divided into five sections: The first chapter is introduction, introduced the main topics of the purpose and significance of the research, literature review, research contents and innovation.The second chapter mainly analyzes the U.S. subprime mortgage crisis and its characteristics. The crisis showed characteristics that it hit the us banking strongly, the scope of it spread all over the world,and influence of it continuously deteriorated.The third chapter analyzes U.S. subprime mortgage crisis from the macro economic and financial system and the social credit system aspect. It thinks the product of the subprime crisis is global liquidity, the change of interest rate policy, the failure of financial supervision mechanism, ignorce risk management of financial institutions, overexpansion of asset securitization and defects of credit rating system.The fourth chapter combined risk analysis of our commercial bank individual housing mortgage loan, puts forward risk prevention measures such as strengthening forecast of the real estate market and the interest rate trend. At the same time, it proposes solutions to solve the problem of housing mortgage-backed securitization ,combined cases,in order to advance its development healthly. The fifth chapter analyzes the revelation of the subprime crisis to financial supervision in China. From the reality of China's financial supervision, China's financial supervision exists improper legislation, poor coordination between regulators and low efficiency of divided supervision. Combining the subprime mortgage crisis,it puts forward methods incluing the transform from institutional supervision to functional supervision, strengthening supervision to financial innovation.