Risk management in commercial banks: housing mortgage loans after the subprime crisis
| Author: | Bc. Jiayan Zhang |
|---|---|
| Year: | 2020 - summer |
| Leaders: | Mgr. Magda Pečená Ph.D. |
| Consultants: | |
| Work type: | Bachelors |
| Language: | English |
| Pages: | 72 |
| Awards and prizes: | |
| Link: | https://is.cuni.cz/webapps/zzp/detail/213937/ |
| Abstract: | The subprime crisis in 2008 was a financial tsunami that affected the whole world. The primary source of the financial crisis was the increase in mortgage defaults, caused by the burst of the housing bubble. Prior to the crisis, the policies for housing mortgages within commercial banks were more relaxed. In the United States, before the subprime crisis, house prices were rising, and the market boomed, with people readily getting loans from commercial banks, without having to provide adequate guarantees. Inadequate risk management of mortgages was a major factor in causing financial disaster. Following the subprime crisis, commercial banks around the world realised the importance of risk management in personal housing loans. In this thesis, I plan to study the risk management system of the American mortgage business, the causes of the crisis and summarise the American subprime crisis. Moreover, I will introduce how commercial banks around the world China the emerging market and the U.S. as the original of the subprime crisis, The Europe which was affected by the subprime crisis. And maily discuss the comparision between the U.S. and China.This thesis will focus on the risks of housing mortgages, look at the related theories, and summarise the latest research achievements in associated fields, divided into the different markets. It will also discuss lessons learned from the crisis, particularly in the risk management of housing mortgages. The final goal of this thesis is to oversee mortgage risk management from a horizontal perspective in different markets including U.S., Europe and other emerging counties especially China, since the financial crisis and to build a global mortgage risk management framework. It will focus on risk management in emerging markets after the disaster. It is more crucial to understand the characteristics of current global market risk management and some forward-looking experiences for future risk management. |
