Research Of State-owned Commercial Banks’ Consumer Credit Risk Management

After 2008 downturn, Chinese real estate market begins to recoverquickly in May 2009. The property price has doubled within eightmonths. In the meanwhile, due to the increasing demand from the market,the turnover rate has risen perpendicularly. With bank individual consumer credit scale expanding, potential risks have accumulated at a high level. From the Commercial bank individual consumer credit risk evaluation system, it can be seen that the consumer credit is currently less risky, such as both consumer credit and housing loans credit are in good condition. However, housing loans take a high proportion in the consumer credit market, it has a huge potential risks in the consumer credit market. Chinese commercial bank need to establish the suitable personal credit scores models to improve the risk management system to obtain ability to adjust to changes in different situations.According to researching consumer credit product categories and the international and domestic advanced risk management systems, this paper is aim to provide some measurements and suggestion of how to set up a suitable commercial bank consumer credit risk management system.Three different consumer credit categories are discussed in the following part. First, there some elaborate suggestions and responses are provided by researching of how housing loans happened, developed and the potential risk of housing loans. In this part, the paper also analyses the operation risk, credit risk and the risk of collateral that are produced within the process of bank operation process. Second, the paper answers how to set up reasonable managerial rules and measurement according to analysis of the personal auto loan market. At last, the paper researches the process of commercial housing loans operation to conclude the suitable and advanced managerial rules.The paper analyses the organisation structure, strategic risk management and system construction, financial innovation in terms of how commercial bank to deal with the risk of consumer credit. In addition, the paper researches the specific business standards and the process of operation in terms of finding the improved ways and measurements to avoid the risk of consumer credit. The disadvantage of the article is not providing the suggestion and measurements to avoid the risks which are produced by changes in the external environment.