G Bank Personal Housing Mortgage Loan Risk Control Study

In recent years, with the rapid economic development, real-estate industry have turned into one of the mainstays of china's economy, in which the housing loan has been pushing it forward and playing an important role. Since the year when the welfare housing stopped distributing in 1998,personal housing mortgage loans in commercial banks have surged accounting for its major share in the residential housing purchase. At the same time, the risk in real-estate sector is also rising as a result of some irregularities in lending and property bubble in some regions.Since G Bank has begun its real-estate mortgage loan business, default amount is on the rise from time to time, and many financial bad debts has constrained the further development of the business. Lacking credit monitoring system and credit risk control mechanism, G Bank is in nascent stage without systematic managerial expertise. The paper'The Research of Risks and Preventive Mechanism in Personal Housing Mortgage Loans", based on the writer's longtime practice and experience in managing and administrating personal housing mortgage business, attempts to describe the causes of risks in personal housing mortgage loans and global best practice in risk management in the business, suggest some systematic solutions to banking community to the management of risks and the establishment of risk-prevention mechanism in personal housing mortgage loans, which are of great importance and immediate significance.The executive summary part of the paper describes the background of the subject selection, the significance and methodology of the research. After brief description of the development and risk management of personal housing mortgage loan operation of G Bank, Chapter One reveals the risk factors in personal housing mortgage loan business by demonstration of some real irregular cases in G Bank. Chapter Two analyzes the causes of risks of the business from the perspectives of property developers, borrower, banks, mortgage security and regulatory and legal environment. Chapter Three introduces the best experience and practice in developed countries housing...