Analysis And Prevention Of Individual Consumer Loan Risk In Commercial Banks

After the development in recent years,consumer credit business has developed rapidly and gradually become an important business for commercial banks to make profits.The personal consumption credit business of commercial banks can solve the problem of personal temporary funds,and can use the idle funds in the society.Due to the short term and simple operation procedures of this credit method,it is widely recognized by consumers.However,due to the rapid development of personal consumption credit business,commercial banks must pay attention to the risk management of personal consumption loans.Therefore,the risk management of consumer credit is an urgent problem,which has a positive impact on risk prevention and avoidance.It is necessary for commercial banks to establish a scientific and operable personal consumption credit risk evaluation system to prevent risks,which is the main content of this paper.The research method used in this paper is a combination of qualitative and quantitative methods.The main research is A commercial bank’s management of personal consumption credit risk.First of all,it analyzes the domestic and foreign literature on this kind of research,and then discusses the profile of personal consumption credit risk,credit vulnerability theory,etc;Secondly,it collates and counts the factors that influence the personal consumption credit risk of Bank A;Finally,combined with the Logistic regression model,select indicator variables to build a personal consumption credit risk model for risk evaluation,and make an analysis according to the actual risk situation of Bank A.Put forward the risk prevention suggestions of Bank A,and draw conclusions and prospects.The results show that the risk factors of personal consumption credit of Bank A include three categories:the borrower itself,the lending bank and the influencing factors of the external environment.The results of personal credit scoring model constructed by logistic regression analysis show that marital status,occupation,repayment and personal income have a direct impact on the borrower’s performance ability,but the impact of gender,age,education background and loan amount is not very significant.It can be seen from the final credit score that the score range of Bank A’s individual consumer credit customers is210-240 points.Customers with a score of more than 226 points are performance customers,and those with a score of less than 226 points are default customers.Based on this,combined with the theoretical and empirical research results of this paper,the risk prevention suggestions are put forward: prevent and improve the loan process at the loan stage,establish a credit risk early warning system,improve the personal credit reporting system,etc.