Work detail

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:
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.

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