The Research On Risk Prevention Of Individual Housing Loans Of Commercial Banks

As a credit product with a strong value-creating ability, individual housing loan gains popularity in commercial banks because of its small capital coefficient, low risk weight and high rate of capital return. With its business share increasingly rising in various loans, it has become a new profit growth point and long-term strategy direction of commercial banks. In recent years, under the additive effects of continuous implementation of urbanization and slowing down of economic growth rate, individual housing loan’s implicit and explicit risks are exposed, which definitely may cause chain reactions in real estate and its upstream-downstream industries, residential housing consumption and even the entire national economy. How economical banks identify, transfer, control and manage individual housing loan risks and then construct a risk prevention system composed by individuals, society, banks and government has become a hot issue to be addressed urgently at present.As to research significance, the paper screens and analyzes the main risk points of various subjects in real estate market and then puts forward strategies specifically to control and address risks, in order to help comply with macro-economy development trends and promote real estate’s adaptability to economic development and coordination with related industry to realize continuous&health development. The paper analyzes and demonstrates the key drivers of risks by sorting various risks in the business process of individual housing loan, in order to help managers of commercial banks adjust management strategies with definite goals and directions, further avoid risks, make prudent operations and prevent&control financial risks to realize the balance of business process efficiency and risks management&control on a higher level and ensure the safety, stable and high-efficiency operation of banking industry. The paper may help further improve the comprehensive, multi-function and intensive risk management system of commercial banks, strengthen the comprehensive risk management system and enhance the risk management&control effects of commercial banks.As to research methods, this paper follows the research laws from the abstract to the concrete, from theory to practice, and from the quantitative analysis to the qualitative analysis. Based on the concrete practices of China’s commercial banks, the paper makes an empirical analysis on the causes of individual housing loan risks of commercial banks by using research methods such as literature combing, statistical analysis, and quantitative analysis. Qualitative assumptions are affirmed with empirical analysis so as to realize the combination of theoretical research and empirical analysis, and the corroboration between the quantitative and qualitative analyses.As to research results, the paper makes an empirical analysis on the causes of individual housing loan risks of commercial banks based on the research results of housing loan risk prevention and the case of Bank C’s business data and case study by studying and reviewing theoretical literatures related to individual housing loan risk management. The paper mainly analyzes external microenvironment risk, developers’ credit risk, borrowers’ credit risk, the internal risk of commercial banks and the risk of partner. Basing on the analysis results of the causes of Bank C’s individual housing loan risks, the paper puts forward five strategies to improve commercial banks’ individual housing loan risk prevention.