China's Commercial Banks To Individual Housing Consumption Credit Risk Research

In 21 century the axis of economic operation is transferring to modern financial industry. Modern finance provides lubrication and impetus for operation and development of real economy, and what's more important is that it promotes division, reorganization and upgrading of economy. As a new consumption pattern and credit channel, consumption credit development and improvement become the necessary part of modern finance, and it also draws attention from government, bank, enterprise and residents.Since The People's Bank of China issued the notice Guidance on Developing Personal Consumption credit in March, 1999, all those commercial banks quicken their pace in developing consumption credit. Among consumption credit business, personal housing consumption credit is an important component. Although it's thought as business of high safety by domestic and international researches and practices, we still have to harmonize the contradictions between small, dispersed, short-run capital resource and large, concentrated, long-run capital put. If we cannot properly resolve these contradictions, there'll be financial shock. Therefore, as to personal consumption credit, we should establish a set of risk prevention system to prevent and dissolute its risks effectively.This paper probes into risks of China's personal housing consumption credit during its development. Based on existing theoretical research accomplishments of consumption credit and consumption credit risks, we analyze situation of our personal housing mortgage loans, their forms and reasons of risks, and then point out some measures to prevent risks of personal housing mortgage loans...