Research On Risk Management Of Personal Housing Loans Of Agricultural Bank Of China AH Branch

With the deepening of reform and opening up,and the continuous development of economy, China’s real estate industry, playing a great role in promoting the national economy and improving people’s livelihood, has obtained a rapid growth. The growth, in fact, has been boosted by housing finance services provided by commercial banks. Along with the rapid development of real estate industry, however, issues such as soaring housing prices and imbalance between housing supply and demand appear constantly, In order to ensure the steady development of real estate market, measures in terms of credit, taxation, land management are introduced, which strengthen macro-control on the real estate market and also put forward higher requirements for operation management,market strain and risk management ability of commercial banks. Especially under the current international situation and the "three periods superimposed" effect, China’s economy is entering a new normal stage, in which the slowdown economic growth is encountered with more pressure, some industries are difficult to operate, risks in both private lending and guarantee chain are gradually transferred to credit banking business. Potential risks in personal housing loan business are unveiled. Attentive corporation loans and non-performing loans increase. Risks prevention and control is getting more important. In this condition, deep research and discussion in personal housing loan risk management has important theoretical and realistic significance.This paper, based on comprehensive risk management, loan to value ratio and default risk options of commercial banks, with methods of case study, comparative analysis and statistical analysis, taking individual housing loan development and risk management of agricultural bank AH province as an example, makes a classification, identification and analysis of the main risks. It carries on a thorough discussion on strengthening risk management, puts forward some countermeasures and suggestions, in steps of risk identification and measurement, risk monitoring and control, and risk treatment. Three main conclusions are made in this paper. The first:it is made clear that the bank’s individual housing loan business is exposed to risks gradually and it is urgent to strengthen the risk management work; the second:it is made clear the main risks and risk-relevant factors, and the main problems of risk management the bank has. The third is to put forward basic ideas and strategies for strengthening risk management, and make it clear about the specific measures, including strengthening research and anticipation ability for the external economic environment, the management of developers and borrowers default risk, the loan process management, the risk management tools, and building up a professional management team.This article is structured with six chapters. The first chapter introduces the research background, purpose and meanings. The second explains comprehensive risk management of commercial banks and related theoretical basis, and summarizes the domestic and foreign scholars research achievements. The third chapter analyzes development and risk status of personal housing loan in agricultural bank AH province. The fourth chapter makes a present situation analysis from the main performance, key factors,and main problems of risk in the bank’s personal housing loan risk management, and establishes a risk management framework according to risk identification and measurement, risk monitoring and control, risk management process. The fifth chapter states basic ideas, policies and measures. The sixth chapter is composed by research conclusion and research prospect.The innovation of this paper is that:first, it focuses on present status of business development and risk management of individual housing loan in agricultural bank AH province, and accordingly puts forward strategies and measures, which is conducive to further enhancing risk prevention and control ability and promoting healthy development of the business. Secondly:it puts forward a risk management framework for the personal housing loan of the bank, which is a significant reference to strengthen risk management for personal housing loan for commercial banks.