A Study On Risk Analysis And Prevention For Personal Housing Loans

With the reformation of China's individual house delivery system and the conversion of residents'attitude toward borrowing money, domestic market of personal housing loans has rapidly developed. In condition of continuously heated individual house market, commercial banks take personal housing loans as their new profit resources and main consumer credit product, while protection of the personal housing loans risks being an important component of their risk management measures. Then personal housing loans'development and risk protection are significant to China Construction Bank, which is the leader of the domestic personal housing loans market.On the basis of analysis on personal housing loans and relative influence factors, this paper studies the personal housing loans risk management of the commercial bank. It's expected to provide ideas to promote the personal housing loans risk management of China Construction Bank in the light of the actuality.In Chapter II, the paper first looks back on the history of domestic individual house market, and describes the status in quo. It is said that the personal housing loans is invited because the total amount of the house trade exceeds that of the house purchaser's present payment power. Following is the up-to-now situation of the personal housing loans both in China and of China Construction Bank.Since the New Basel Capital Accord (also known as Basel II) defines the risks faced by the commercial bank as three types, which are credit risk, operational risk and market risk, in Chapter III, the paper analyses the risk factors of the personal housing loans by dividing the risks which the loans confront into credit risk and operational risk. Credit risk factors include borrower's willingness, payment ability, the be-in-debt attitude, reinvestment products and house selling, while both the internal factors(operational process, employee, information system) and the external factors(outside events) will influence the operational risks.The paper continues to study the personal housing loans credit risk management and operational risk management respectively in Chapter IV, analyzing the personal credit scoring system, personal housing loans process transformation etc.Finally, the paper provides the recommends to China Construction Bank personal housing loans risk management on the base of the status of the bank's risk management. It suggests that China Construction Bank should develop the personal credit scoring system, promote the ability of product design and pricing, enhance the internal control and policies system, reform the process, establish a strict reward/punishment, and improve the whole level of risk management.