The Liquidity Risk Analysis Of Individual Motrgage Of China’s Commercial Banks

With the rapid development of national economy and the continuous increase ofnational income, the real estate industry has developed rapidly. Housing is not onlythe necessities of life of residents, but also a means of investment. A lot of moneypours into the real estate market and the demand for individual housing mortgageloans is rising. Along with financial liberalization and deepening of economicglobalization, the competition among banks has become increasingly fierce. The riskof individual housing mortgage loans is relatively small because it has real estate ascollateral, Therefore, individual housing mortgage loans has become popularbusiness which banks compete to develop. The total amount of individual housingmortgage loans is increasing, at the same time, the risk is gradually exposed.Liquidity risk is a kind of composite risk, it has the characteristics of highconcealment, once liquidity risk formed, it will endanger the entire financial systemand even the stability and development of the entire national economy. Under thebackground, this paper choose the liquidity risk of individual housing mortgageloans of China’s commercial banks to study, this paper is divided into five parts.The first chapter analyzes the significance and research background, reviewsthe research results of liquidity risk of individual housing mortgage loans ofcommercial banks by domestic and foreign scholars, and points out the mainresearch methods, innovation and deficiency of the paper.The second chapter introduces the concepts and features of the liquidity risk ofindividual housing mortgage loans, and reveals the link between the liquidity riskand other risk. The third chapter introduces the main measure of liquidity risk of commercialbanks, including liquidity indicator method, duration analysis, cash flow analysis,liquidity index. We choose liquidity indicator method as the measure of individualhousing mortgage loans according to data availability.The forth chapter first analyzes the status of the liquidity risk of individualhousing mortgage loans in China by using the liquidity indicator method; then itanalyzes the reasons from the aspects of the economic environment, the internalenvironment of the commercial banks and the real estate enterprises; finally thischapter analyzes the consequences and uses the Northern Rock plc as a case.The fifth chapter establishes a system of the early warning indicator, includingits meaning, steps, basic content and brings the enlightenment from the liquidity riskearly warning mechanism of international banks. It also points out the preventivemeasures from commercial banks, real estate enterprises and external environment.