Commercial Banks Real Estate Credit Risk Analysis And Management

Along with the deepening of the China's reform-opening policy and the reform of urban housing system, the domestic real estate finance has made a great growth. In the tendency of monetization and commercialization, research on the risks management of real estate finance becomes an essential work to the future development of the entail national economy.These days, real estate industry, especially the housing industry has become a brand new rise point of domestic economy; therefore, real estate loan plays a very important role in the economic life. Emphasis on the risk analysis and prevention mechanism will be crucial to the real estate finance in the 21 century.The current financial and credit processing system make the credit risks and liquidity risks as well as rate risks quite difficult to be prevented. Meanwhile, the government made an utmost effort to stimulate the development of the housing industry through expansionary credit policy, which makes the real estate institutions stepped into a dilemma. Therefore, an effective way to release the above mentioned risks would be very needed to the l stability of the entail economy.This article begins with the basic principle and mainly discusses the current problems of the real estate credit; and also includes the typical credit risks analysis and makes a dissecting of the prime cause of those problematical credits. The most important part is that the article comes to a conclusion of the establishment of the real estate risks prevention mechanism.First, the part 1 and part 2 of the article, mainly discuss the reason and the method of this research. And give some practical suggestion to establish an effective a risk prevention mechanism.Second, the part 3 and part 4 of the article, discuss the real estate credit risks through meticulous theoretical and empirical analysis. Last but not the least, the part 5 gives personal suggestions of practical risk management method.The aim of this article is to make an personal evaluation of the current real estate credit risks and discuss the reason of those risks as well as the effective way of preventing them. The key problem I discuss here is to conduct practicers applied tactics to decrease, or to certain degree eliminate the possibility of the real estate credit risks.