Reaserch On Avoiding And Mitigating The Risk Of Personal Loan In Bank Of Jilin, Songyuan Branch

The personal loan in China has been developing faster an-d faster since the1990s.The sustainable development of personal loan and the increasing balance ofthe loan represents that personal loan in our nation has been in the fast-growingperiod. Simultaneously, we can not utilize current mode for the risk manageme-nt ofthe personal loan business, and it has not been forming into a co-mpleted system, forpersonal loan is a newly-developed business in the commercial banks of our nation.In the situation of the fast-developing pe-rsonal loan in the commercial banks of ournation, the present risk man-agement can not be suited for the personal loan business,so we need to make improvement on the current system of risk management urgently.Staying the same pace with the reform in our nation, the consumptions andinvestment of citizens in Songyuan is increasing faster at present, and meanwhile thepersonal loan in Songyuan branch of the Bank of Jilin is increasing as well. Personalloan in Songyuan branch of the Bank of Jilin is a newly-developed business. There isno current mode for the ri-sk management and no completed system to be utilized,so it is only a- part of system of risk management at present.In this paper, I madesummaries on the research made by financial expert and analysts by takingreference from the idea on the risk management domestically and aboard, focused onthe research on the probability on the risk-controlling and management, emphasizedon the research method suiting to the local condition, whichwould identify a rightsolution for risk management of personal loan in the our nation’s commercialbanks and provide a sustainable and health way for the development of riskmanagement on personal loan in our nation.In this paper , I made analysis on the factors which could take effect on risk management and current situation of personal loan in our nation’s commercial banksby the approaches of factor analysis data analysis ,applied research ,etc,identified the right solution to problem on the risk of personal loan from the point ofview of credit risk , operation risk and market risk.Firstly, Itook analysis on thecharacteristics on the risk of the pers-onal loan and hidden danger , introducing theconcept of prevention the personal loan risks, the theory of the personal loan andrisks, and the theory of the risk management and process on the personalloan.Secondly, I took a completed analysis on the situation of the riskm-management of personal loan, discussing three aspects on the risks, and makingfoundation on the prevention measures for the personal loan.Thirdly, I put forwardmanagement measures on the credit risks of t-he Bank of Jilin and preventionmeasures on the point of the business process in Songyuan branch of the Bank ofJilin by making research on the risk management mode of international personal loanbusiness.Finally, I put forward the concrete measures on the risk management of thepersonal loan, making applied research on the risk management of the personal loanin Songyuan branch of the Bank of Jilin ,unifying t-he idea ,establishing theorganizational framework and strengthening the measures on the monitoring therisks to solve the problem in the risk management of personal loan. It is meaningfulfor the risk management of personal loan in Songyuan branch of the Bank of Jilin.