Research On Operational Risk Of Housing Loan In China

In recent years,real estate not only satisfies the demands of living,but also becomes the main direction of resident's investment as Chinese urbanization accelerated.The prosperity of real estate market has been making the individual housing mortgage loan of China booming.The government is aware of growing risk among the development of real estate and issues many regulatory policies to curb the overheating market.Meanwhile,commercial banks need to manage the risk of individual housing mortgage loan,ensuring the stabilization and health of real estate financial business.In operation,commercial banks encounter a number of risks.The risk identification and management plays a key role in pursuit of profitability.The main risks faced by commercial banks include credit risk,market risk and operational risk.Credit risk,known as default risk as well,refers to the situation where a borrower may fail to make required payment and the lender may lose the principal and/or the interest of the loan.Market risk is the risk of losses in positions arising from movements in market prices.Operational risk is the risk of a change in value caused by the fact that actual losses,incurred for inadequate or failed internal processes,people and systems,or from external events,differ from the expected losses.In this paper,the deficiency in business development of the commercial bank will be analyzed through a few case studies of individual housing mortgage loan based on an example of a branch of a state-owned bank.Suggestions for improvement will be made based on the evaluation of the organization structure,business process and system.As a staff of the mortgage loan department of a commercial bank,the author is proposed to research the operational risk management according to practical working experience.Through the statement of the current property market and the mortgage loan in China,the author will present to the importance of keeping the stable development of the property market and the financial market.To guarantee Commercial Bank the stable development of financial market,the risk management must be paid enough attention to.The article is divided into six chapters.The first chapter,which mainly elaborates the significance of the topic,the research content,the research method and so on and so forth,is followed by the next part the introduction of the research and development trend of domestic and foreign related research on the operational risk of personal housing mortgage loan.The basic concepts and related theories of operational risk and individual housing mortgage are introduced in the third paragraph.An example of a certain state-owned commercial bank Chengdu branch's individual housing mortgage loan business is presented in the next chapter.The article studies the bank's individual housing mortgage business with the its own characteristic,using the Principal-agent Theory and the Asymmetric Information Theory,to put forward potential operational risks,from organization structure,business process and business system three aspects.The fifth chapter proposes reasonable suggestions on the operational risk prevention and management of the individual housing mortgage loan based on the discussions and analysis above.Through the research mentioned before,this paper can be instructive regarding the risk prevention and management of personal housing loan of commercial banks on the operational level.The final chapter is the summary and deficiency of the thesis.