Research On Personal Loan Risk Control Of A Branch Of S Bank

The personal loan business is the core business of the bank.In recent years,the personal loan business has developed rapidly,and the loan scale has increased six-fold in the past decade.As core business of commercial bank,personal loan business has developed rapidly in recent years and the scale has increased six-fold in the past decade.As China's financial market opens gradually,Internet finance,small loan companies and other various types of banks are rising and competing in the personal loan market.Banks face greater competitive pressures in developing personal loan business.Under those competitive pressures,various types of risk events have emerged in an endless stream,causing greater losses to banks.The personal loan business has the characteristics of wide loan object,small single loan amount and relatively scattered risk.The competition of personal loan business is ultimately the competition of risk control capability.While maintaining business growth,how to effectively control the risk of personal loans is an important issue faced by banks in developing personal loan business.For a branch of S Bank,personal loan business has grown rapidly in recent years.However,with the growth of personal loans,the non-performing rate of personal loans has also risen rapidly,higher than the industry average.A branch of S Bank faces greater supervision and development pressure.Therefore,the analysis of the problems existing in S-bank's current personal loan business and how to improve the bank's risk control system have important practical significance for the bank's personal loan business' s sustainable delete it and healthy growth.Based on literature review and related theories,this paper firstly summarizes the scale of the current personal loan business of a branch of S Bank,the placement of various types of personal loan products and the quality of personal assets through data analysis.Secondly,We do research on characteristics and types of risks,identify risks through workflow methods,and evaluate risks using expert methods.At present,S-banks mainly have operational risk control problems,moral risk control problems,credit risk control problems,and market risk control issues.Finally,this paper analyzes the causes of operational risk control,moral hazard control,credit risk control and market risk issues,and proposes corresponding optimization measures.The conclusions of this paper are as follows:(1)The current personal loan scale of a branch of S Bank is growing rapidly.The growth rate of loan balance in 2017 is 72.6%,and the growth rate of loan balance in 2018 is 30.4%.Growth also showed a rapid development trend;(2)At present,the bank's personal loan risk level is relatively high.By 2018,the non-performing rate of S Bank's personal loan business was 2.06%.While the average level of personal loan business in the bank industry is 1.5%.At present,S-bank's personal loan non-performing rate is significantly higher than the industry average,and there is a large risk;(3)At present,the bank's risk control has operational risk control problems,moral hazard control problems,market risk control,and credit risk control issues;(4)This paper proposes optimization measures for operational risk control issues,moral hazard control issues,market risk control,and credit risk control issues.In credit risk control,a data mining model is established to compare and analyze current credit ratings and improve accuracy of the rating;in the market risk,using the RAROC pricing model to optimize,through comparative analysis,the accuracy of loan pricing has also improved;(5)After the risk control optimization,the paper re-evaluated the risk,the assessment of each risk has been reduced,verifying the effectiveness of risk control optimization measures.The research in this paper has important practical significance for improving the risk control of the personal loan business of a branch of S Bank and promoting the healthy and sustainable risk of the bank's personal loan business.It also provides a reference for other similar banks to improve their risk control system of personal loan business.