The Measurement Evaluation Model Research On Credit Risks Of Individual Housing Loans In Commercial Bank

The credit risk of individual housing loans is subject to many factors. The borrower's micro-environmental factors such as the borrower's income, education, occupation type, status of children, individuals property status, co-applicant, loan amount, loan term, etc. The macro-environment factors in which to consider from banks and borrowers have the external environment include the risk of developers, the risk of price changes, the bubble risk, the local economic conditions, interest rate risk and so on. So many factors that can affect the credit risk of individual housing loans. This article is to analyze how various factors affect the credit risk of individual housing loans and the measurement of risk.The analysis of the credit risk factor that impact individual housing loans is the provision for loan losses for the commercial banks to prepare. Different borrowers have different choices of repayment when individual housing loans will be lent. Therefore, a different manner of its repayment by discounting the present value obtained is different. This paper will build individual housing loan loss provisioning model from the micro and macro factors, repayment methods and the present value of future cash flow which affect the individual housing loans. As far as possible to prepare a comprehensive provision for loan losses which need in an all-round and multi-angle observation to see the individual housing loans trend. Also brought forward self original view in order to reduce the credit risk losses caused to the bank.The loan loss preparation is an important step in bank operating process. The bank needs to do is not only raises how many loan loss preparation according to affects individual mortgage the microscopic and macroscopic environmental factor, but the important thing is to provides operational basis on individual mortgage's credit risks. In this paper proposed a ratio between individual loan loss preparations with its book balance in order to measure the size of credit risk. This ratio will play the role of the risk signal, thereby to judge the bank or the national credit risk of individual loan credit risks for the size.