Commercial Bank Of Individual Housing Loans To Legal Risk Analysis And Prevention Research

With the development of the real estate industry, which is motivated by theimprovement of the demand for housing, personal housing loans are growingdramatically in China. Personal housing loan operation is considered benign assets ofcommercial bank because of its low risk and high income, but low risk does not meanno risk. Personal housing loans in our country exist risks that cannot be ignored,because borrowers in such a long loan time may come cross economic instability.Commercial banks have a relatively weak position in complex legal relationship ofpersonal housing loans, and they are most likely to suffer the risk of loss.Legal risks are the most prominent problem among the risks that the commercialbank envisaged, so the precautions to legal risks are very important and urgent. As theratio of personal housing loan to credit operations of commercial bank is increasingsteady, legal disputes become more commonplace and complicated. Commercial bankrisks more challenges, while the financial laws of our country are not perfect enoughto prevent various legal disputes. If proper measures are not carried out, the venture ofbad debt and the lack of financial liquidity will come out. Therefore, to study the legalrisks and their precautions is not only necessary to keep commercial bank developingin a healthy way, but also to the stabilization of the financial circles and even thesociety.This paper analyzes the legal risks and discusses countermeasures by collecting alot of literature and absorbing previous research results. First, the paper points out allkinds of risks faced by commercial banks in the personal housing loan operation, andthen focuses on the legal risk points and their formation reasons. The related measuresto prevent the legal risk are proposed after reviewing the advanced experiences of thedeveloped countries.