Overview of the development of personal housing mortgage loans of commercial banks in China
The development history of housing mortgage loans in China is not long, the development process of Chinese real estate, from 1978 reform and development, has gone through 30 years, the personal housing loan industry has undergone a period of evolution, forming a relatively standard development pattern, however, the scale has also expanded a lot. The analysis process of the credit crisis of commercial bank personal housing mortgage loans, in order to further the understanding of the credit crisis of personal housing loans, to carry forward the understanding of China and personal housing loan control.
In recent years, China’s real estate industry has maintained a high growth rate, bringing the best real estate development. Due to the profit environment of the vast own transactions, various commercial banks have been involved in the real estate credit market, and residential housing mortgage loans account for a large proportion of residential consumer loans.
Risk analysis of personal housing mortgage loans of commercial banks in China
As the housing credit crisis is relatively small, commercial banks often neglect their original crisis, the crisis of personal housing pledge loans of commercial banks in China mainly face the following aspects of the crisis.
(i) Credit risk
In China’s commercial banks, the borrower’s willingness to repay the loan and the ability to repay the loan are particularly critical information, while the protection of personal information in China is not yet regulated by relevant laws, information systems are incomplete, and information asymmetry often occurs in the banking business so that customers will suffer great unnecessary losses. The personal housing loan transaction also has the same information asymmetry, the loan bank can issue the loan by attaching the crisis income interest rate, so that the borrower is subject to the market risk and also subject to the loan credit risk, a variety of factors in the market will affect the borrower’s solvency, due to the information asymmetry may cause the borrower’s moral hazard, commercial banks can not fully grasp the borrower Due to the asymmetric information, commercial banks cannot fully grasp the changes of the borrower’s solvency, and since China’s personal credit system is still under construction, the borrower may default and not return the loan.
(ii) Mortgage risk
Since the housing pledge loan crisis mortgage brain loan guarantee as a secondary source of repayment of money commercial banks, when a borrower can not pay back the loan principal and interest, commercial banks are able to deal with the pledge in accordance with the law to enjoy the first to receive compensation to remedy their losses. However, the pledge price crisis and the pledge disposal crisis also plague commercial banks. The market crisis of the pledge price and the intentional crisis of the pledge price are the important components of the pledge price crisis.
(iii) Liquidity risk
The assets of commercial banks are derived from corporate income, savings income and other short-term deposits, and the duration of individual housing pledge loans is very long and slow to recover, and there is a mismatch between the source of funds and the time of use. The main reason why commercial banks cannot achieve the standard operation is because of the relatively poor liquidity of personal housing mortgage loans.
(iv) Interest rate risk
Interest rate risk refers to the possibility that changes in the level of interest rates will cause commercial banks to lose income from their assets. If the loan interest rate rises, the borrower’s repayment responsibility will become larger and once his income level cannot keep up with the excess mortgage, the borrower may not be able to afford it and will not be able to repay the principal and interest of the loan. Then the following is the impact of interest rate changes on home mortgage loans.
Measures to prevent the risk of personal home mortgage loans of commercial banks in China
Chinese commercial banks to be based on China’s commercial banks self housing loan crisis governance issues, from the perspective of the crisis faced by commercial banks personal housing transactions, to do all of China’s financial line open to the outside world, fully open to the outside world must be developed from the positive side of the challenge, personal housing mortgage loans, the four risks of commercial banks, commercial banks can take the following measures.
(A) the establishment of a personal credit system to control the risk of borrower default
China’s personal credit system construction is the end of the ninth five-year plan of the domestic market weakness, the lack of domestic demand proposed and began to take off, increase with the increase of commercial banks personal consumer credit business objective requirements of the development of China’s commercial banks consumer credit business and rectify the deepening of the market economic order, personal credit system construction has made some progress, especially since 2000, the Shanghai In particular, since 2000, Shanghai’s “Personal Credit Joint Investigation Service System” has accumulated valuable experience in the construction of China’s personal credit system. However, the construction of the system has just begun, and it has not yet formed a relatively perfect system to stimulate the establishment of China’s self-credit system in general, there are still many problems waiting to be dealt with.
(2) Establishing a government guarantee system
Our country can set up a wholly state-owned or state-owned guarantee industry to supply housing credit guarantees for the needy groups. Gain control of existing local regional guarantee companies through mergers and acquisitions, and establish a guarantee network covering large and medium-sized cities across the country by integrating internal operations and establishing branches nationwide. The corporatized operation mode can make the guarantee company more professional and efficient.
(iii) Strengthening interest rate risk management and liquidity management of personal housing mortgage loans
First, adjustable rate pledge loan development can adjust the cycle to a one-month interest rate adjustment period, four months, six months or one year, this cycle arrangement method is in accordance with the market interest rate shift rate. Compared with the floating rate, it is the difference between the periodical rate adjustment will help to increase the competition between commercial banks and loans, crisis guaranteed by the bank, move to the borrower’s interest rate rises, as well as transfer the risk borne by the borrower to the commercial bank rate falls. Second, the development of fixed-rate mortgages, mortgages are fixed-rate mortgage contracts, loan terms, loans fixed-rate mortgages. Fixed-rate mortgage model, Bell most commercial banks interest rate risk, if commercial banks can match access to fixed-rate loan funding sources, such as fixed-rate bonds, interest rate swaps, etc., can avoid the corresponding interest rate risk and liquidity risk mismatch. Third, hedging, China’s financial futures market is gradually opening up, commercial banks can manipulate derivative financial instruments to hedge interest rate risk management, offset changes in interest rates caused by changes in property and debt prices through market transactions, and use interbank options, swaps and exchange options to hold lasting interest rate crisis management. Fourth, the development of secondary market transactions of personal housing pledged loans, through the market commercial banks personal housing pledged loan debt sales, in exchange for loans or high liquidity of short-term debt, growth of liquidity.
(iv) Strengthen the internal management of commercial banks
Strictly review the loan procedures – in the process of signing the contract, it is necessary to strictly review the relevant contract clauses and supplementary clauses, and also appraise the authenticity and validity of the seals and signatures, and do a good job of file registration and management, because the self housing loans have the qualities of many information and long preservation time. Track the establishment of individual housing title – should grasp and track the exact time of the completion and delivery of the housing in time to urge the developers to deal with the relevant procedures of the title until the housing other rights certificate is obtained for the bank loan. Strengthening professional business – Regular training of legal knowledge and professional knowledge should be greatly strengthened to achieve the integration of three elements of talent development, training and use, and constantly strengthen the comprehensive level of practitioners to reduce artificial risks. In addition, timely monitoring services and customers to strengthen communication and exchange, to overcome the trend of bank loans light management, overdue for a short period of time, should be collected in a timely manner so as not to cause misunderstanding borrowers, even if the bank loan owes a few periods and no one care not fluke, increasing the overdue situation.
(E) improve China’s commercial banks personal housing loans risk transfer mechanism
Personal housing loan transactions when commercial banks in China often require borrowers to provide collateral security, or please third-party guarantees, the borrower fails to repay, commercial banks can be realized collateral against the borrower’s failure to return the principal and interest on the loan, or through the guarantor’s assumption of guaranteed repayment of debt, compensation for the borrower to the bank owes the loan principal and interest. Then, whether the loan can be repaid depends on the credit status of the borrower on the one hand, and is closely related to the value of the collateral provided by the borrower and the guarantee degree of the guarantor on the other hand, so commercial banks should regularly conduct risk assessment on the status of the collateral provided by the borrower, and should also pay attention to the realization degree of the collateral in time. In the actual business, if the borrower uses the ownership of the house as collateral, when the loan cannot be repaid on time, the commercial bank can recover the principal and interest of the loan by legal means or sell the borrower’s collateral to repay the loan in order to avoid the occurrence of losses.