Study Of Risk Management On Commercial Property Loans

In the last dozens of years under the constantly rapid economic growth,China succeeded in promoting the construction of urbanization,booming the market of commercial real estate with great demand.Yet it takes a large amount of capital input for businesses to invest in commercial real estate,which means a huge burden for enterprises.Commercial property loans was designed for the need of such businesses.According to statistic anticipation,current commercial property loans given by commercial banks in China has exceeded 3 trillion RMB,accounting for 3% of total loan volume.Shenzhen alone takes up 200 billion RMB of commercial property loans.Excessive growth of such type can lead to risks and trouble.Nowadays,there are certain analyses about the risk management of commercial property loans in China,which tend to be theoretically qualitative.In this thesis,commercial property loans is analyzed in both qualitative and quantitative dimensions,coped with related measures for risk controls.The main ideas are as follows.First,a summary is given to the current situation of commercial real estate in both China and abroad and the overview of previous research over risk management.Second,the features of commercial property loan is analyzed in order to understand its significance.Study is also conducted on the domestic and foreign status of commercial property loans,focus placed in Shenzhen.Third,issues about risk management in the process of commercial property loans are discussed through theorectial study and questionnaire analyses.Reliability test is combined for the recognition of relevant risks and the analysis of their factors.Forth,we use SWOT to analyze the case of Shenzhen HBN commercial property loan combined with the calculation of cash flow and sensitivity analysis.Last but not least,Borda is used to sort the factors affecting the risk of commercial property loans,and the final risk is calculated with fuzzy synthetic evaluation method based of previous factors.Then preventing measures are given according to the outcome.