Research On Real Estate Credit Risk Management And Control Of Bank Z Nanjing Branch

Since the reform of national housing system in 1998,the real estate industry has been developed rapidly,and it had become the leading industry in China's economic and social development system,which stimulated the rapid growth of the national economy in the past three decades.In the rapid development of real estate,commercial banks played an important role;they provide capital both in credit funds and personal housing mortgage loans.However,with the emergence of structural contradictions in China's real estate industry,the house prices increased continually,the real estate bubble trend begin to appear,state and local governments also issued regulatory policies continually.All of these made commercial banks difficult to manage the real estate credit risks;especially since 2016,fluctuations in the real estate market became violent and the future trend become uncertain,which gives new challenges in the effective control of risks.Firstly,this master thesis reviewed the real estate credit risk evaluation and control theory.Based on the introduction of real estate credit risk definition,classification and characteristics,theoretical basis of financial risk of real estate credit was summarized,including the theory of financial deepening,financial instability hypothesis and financial innovation theory.The history and progress of related researches in China and abroad were also summarized.Secondly,Nanjing branch of Z bank was selected as the research object.The current status of real estate credit in Nanjing branch of Z bank was analyzed in two aspects:real estate development loans and individual housing mortgage loans.Results indicated that the credit risks exist in real estate development loans and individual housing mortgage loans are both increasing.In the aspect of real estate development credit,repayment ability of some customers are reducing;in the aspect of individual housing mortgage loans,the NPL ratio rose to a new high record in recent years.Based on the analysis above,three problems were found:(a)three are loopholes in credit approval and issuance;(b)discrepancy management is not enough before and in credit;(c)there are loopholes in the follow-up early warning management which also need to be quantified.Finally,this master thesis proposed three general principles in the risk management of real estate credit:risk early identification,risk quantitative evaluation and effective disposal of risks.Based on the three general principles,five specific measures were put forward:(a)strengthen the research of macro policies;(b)improve the performance appraisal system;(c)strengthen differentiated level of project management;(d)realize data sharing and build cloud computing system based on big data and(e)reform the management organization.The research of this article provides a theoretical help for Nanjing branch of Z bank to control the real estate credit risk under the new situation,and to some extent,it enriches the research on the real estate credit risk management system of commercial banks.