The Study On The Risk Management Of Home Mortgage Loan Of China Construction Bank Liaoning Branch

Affected by government policies, economic environment and other factors, with the fast growth of real estate market, the Home Mortgage Loan (HML) of China Construction Bank Liaoning Branch (CCBLB) has rapidly increased. An important part of the personal loan of CCBLB, HML account for70%of the total volume and profit of personal loans. Due to the global financial crisis, Chinese Government is actively improving the real estate market, in order to boost economic recovery and prevent further spread of the crisis by stimulating national consumption. Therefore, the risk of HML in Liaoning Province will rise dramatically. Although CCBLB has certain experience in risk management of HML, it is facing a hard situation with other commercial banks vigorously competing for market share. Expanded business brings risk; business practice affords huge potential risk too, which may leads to financial infringement of CCBLB. Therefore, it is necessary and urgent to investigate and discuss the risk management of HML in Liaoning Province and propose countermeasures and suggestions.In this paper, both theoretical and pragmatic approaches are used to analyze the risk of HML in CCBLB on the basis of present situation. Causes of risk in CCBLB are identified in the three conducting stages:before-loan investigation, loan approval, and post-loan management; including social credential environment, immature credit system, blind expansion of business, internal control mechanisms, and macro-environmental impact. By studying and discussing the risk management of HML in commercial banks in the U.S. and Hong Kong, the paper provides enlightenment and successful experiences to the risk management of HML in CCBLB. Valuable countermeasures are proposed with the method of comparative study, combined with the specific circumstances of HML in CCBLB. This paper includes six chapters. Chapter I is an introduction to the topic, research methods and structure of the thesis. Chapter II is a theoretical overview section, regarding risk management of HML and related concepts. Chapter III is the cause analysis of major risk of HML in CCBLB, major risks and their causes are identified in the three conducting stages: before-loan investigation, loan approval, and post-loan management. Chapter IV affords enlightenment and successful experiences of risk management of HML from foreign commercial banks, with discussion and summary concentrating on the risk management of HML in commercial banks in the U.S. and Hong Kong. Chapter V gives counterplot and recommendation, regarding corresponding strategy of the cause analyses which helps to improve the risk management of HML in CCBLB. Chapter VI is the conclusion part, summarizing the study with prospective advice, to further clarify the main direction of development of the risk management of HML in CCBLB.