Agricultural Bank Of China, Chengdu Real Estate Lending Risk Management

Recently, along with the economic development of our country and the increase of the income level of inhabitants, the demands of real estate are increasing quickly. Real estate industry is a typical industry of collecting fund, depending on the credit support of commercial banks greatly. Owing to risk periodicity of real estate industry, it has brought a great amount of bad assets to the commercial bank. Therefore, it is very important to study the risk management of the real estate loan business.In part 1 of the paper, the author introduces the developing process of Chengdu real estate industry and the real estate loan business of Chengdu Branch of Agricultural Bank of China (ABC). It introduces the practice of loan risk of the real estate, classification of the risk according to risk body, risk production and risk annulus, and completely analyses the five main reasons such as credit factor, market factor, management factor, strength factor policy factor etc.that cause the loan risk.In part 2 of the paper, the author introduces the loan authorization management system, confer credit management system and loan operation flow of ABC, by analysing the different loan risks of real estate firms, real estate projects and individuals, and analyses the loan risk control content, process, methods and existent problems of Chengdu Branch of ABC.In part 3 of the paper, the author introduces the loan risk supervising system, principle and methods, analyses the risk treatment process, techniques and methods to project loan and individual housing loan, analyses the risk treatment effect, meansand existent limitation of the assets operating department.In part 4 of the paper, the author summarizes and reflects upon some problems that have been brought forward in the previous three parts, and analyses credit personnel constitution of Chengdu Branch of ABC, conflict and blankness of the loan management system, loan management techniques, lag of the credit information management system etc., and brings forward means to resolve the above problems and relevant advice.In part 5 of the paper, the author chooses a typical example to completely analyse the process of loan risk occurring and control, the loan risk treatment means and effects, relating the example fact, summarize experiences and lessons for the loan risk management to banks.