Study On Personal Loan Business Risk Control Of A Commercial Bank

In order to adapt to the economic development situation,major commercial banks have gradually shifted their business focus to serving small and medium-sized enterprises and individual customers.They have used personal loan business as a “new starting point” for business expansion and have achieved good returns.In today's world,competition is increasing day by day.Innovative products are changing with each passing day.The survival of the fittest and the discomfort are eliminated.Surviving the economic trend means surviving.If there is no reform to comply with the economic trend,it will be eliminated.At present,the A commercial bank has also fully started to the SMEs and individuals.Customer transformation strategy.However,while commercial banks enjoy the huge retail customer base and cross-marketing opportunities brought about by personal loan business,they also face various risks in the course of business development.Once these risks occur,they may result in commercial banks.Certain economic or reputational losses.Therefor e,how to effectively identify retail customer credit risk,improve the level of risk measurement technology,do a good job of risk prevention and control,and reduce risk losses are a problem that A commercial banks urgently need to solve.This article takes A commercial bank personal loan business as the research object,first introduced its personal loan business development status,mainly manifested as 1.the rapid growth of business scale,2.the steady increase of retail customer number,3.the gradual decline of personal credit assets non-performing rate.By drawing lessons from the research experience of personal loan business risk control both at home and abroad,it can be seen that the bank has the following deficiencies in the control of personal loan business risks,including weak loan approval and management systems and defects in the risk management system.Secondly,in this paper,qualitative and quantitative research methods are used.Based on the cross-sectional data of A-bank commercial loan business in 2016,the Logistic regression model is selected and a corresponding index system is constructed to analyze the risk,and the loan amount,loan term,The four indicators of the value of collateral and accumulating interest are the key factors in d etermining the merits of a personal loan.Finally,combined with the status quo of risk control of A commercial bank and the empirical results,it proposes corresponding policy recommendations to enhance the level of risk management to help it transition to a personal credit strategy transfer.