What are the risks of bank mortgage loans?
Judging from the problems discovered in the practical operation of the banking industry, the risks of bank mortgage loans mainly exist in the following four aspects. The following details are for you Introduction:
(1) The risk of difficulty in realizing the priority of bank loan mortgage. The mortgage right is a security interest based on the contractual agreement between the commercial bank and the borrower (or a third party that provides mortgage guarantee for the borrower). It is located after the legal priority based on direct provisions of the law in the order of exercise. Once statutory priority and mortgage priority meet in a loan example, the mortgage priority will be relatively de-prioritized, which may cause the bank's loan claims to lose the protection of security rights to a certain extent or even completely, that is, the loan claims are left vacant.
(2) The risk of insufficient review by banks during the process of granting loans. Article 36 of the "Commercial Bank Law" stipulates that commercial banks have the legal obligation to strictly examine the ownership and value of the mortgage and the feasibility of realizing the mortgage rights, so as to ensure that the guarantee function of the mortgage for the loan can be effectively and fully exerted. In practice, there are many operational problems and huge risks in bank loan mortgage review business. The more prominent problems and risks mainly include: first, misalignment of ownership rights and outstanding loan claims; second, overestimation of the value of collateral directly causes loan risks; third, the feasibility of exercising mortgage rights has a significant impact on loan risk status in inverse proportion.
(3) Legal risks of bank loan mortgage registration. Risks of contract signing and mortgage registration. In practice, the prominent risks in contract signing and mortgage registration mainly include: first, the risk that the loan contract or mortgage contract is invalid; second, the risk that it should be registered but is not registered, or that it is not registered but is not registered; third, the risk of repeated registration; fourth, the risk of double registration; The first is the risk in the loan repayment or the transfer of loan claims; the fifth is the "two certificates" risk in real estate mortgage.
(4) Management risks of bank mortgage loans. Since the mortgage right is a security interest that does not transfer possession of the mortgage subject matter, after the mortgage is effectively set up and the loan is issued, the mortgage object is still in the possession of the mortgagor. The actual validity and legal validity of mortgage rights have a great impact, and the management of collateral therefore faces a large number of risks. The main risks faced in the practice of post-loan mortgage management include: the risk of the mortgagor disposing of the collateral at will due to weak credit and legal concepts; the risk of the collateral being lost; the risk of loss of mortgage statute of limitations; the risk of the mortgage being illegally ruled invalid; Risks arising from the application of the principle of "claims follow assets" and the rule of "ex-rights period" during restructuring.
What is the impact of corporate loan guarantees from banks? Encountering these situations will have a greater negative impact!
Nowadays, when applying for a loan from a bank, the review is still relatively strict. If the borrower's income is low and the credit report is not good, it is often difficult to meet the bank's loan needs. In this case, providing a third-party guarantee will result in a higher loan success rate. So what is the impact of corporate loan guarantees from banks? Let’s find out together.
What is the impact of corporate loan guarantees from banks?
If an enterprise provides guarantee services for bank loans, then in terms of liabilities, the loan will also be reflected on the enterprise's credit report. If the enterprise itself wants to apply for a loan, the lending institution will apply for a loan based on a certain proportion. The guaranteed loans in his name are included in the company's liabilities, resulting in a reduction in the company's own loan limit.
If the borrower is unable to repay, the borrower's credit report will leave an overdue bad credit record, and the credit of the guarantee company will also be damaged.
In addition, the guarantee company also needs to bear the responsibility for repayment. If it is a joint guarantee, the lending institution can directly require the guarantee company to repay.
If it is a general guarantee, it first depends on whether the borrower has assets and collateral. If the collateral is sufficient to cover the principal and interest of the loan, the bank will not hold the guarantee company accountable. If the collateral is insufficient, Then the remaining balance after the debtor's assets are auctioned needs to be borne by the guarantee company.
If the company's own capital flow is tight and it is unable to repay, the company's credit will become worse. If the company wants to apply for a loan or credit card in the future, it will be rejected by the lending institution.
As for the impact of corporate loan guarantees from banks, everyone must have understood clearly that after the guarantee contract is signed, it is difficult to terminate. It requires the consent of the bank, the guarantee company, and the borrower before the company can withdraw. When providing guarantees, be sure to examine the borrower's situation from multiple sources and treat it with caution.
How can companies avoid the risks brought by bank loans?
When an enterprise chooses a bank loan, it is important to choose the appropriate borrowing type, borrowing cost and borrowing conditions. In addition, it should avoid risks from the following aspects:
1. Bank’s There are different policies for loan risks. Some tend to be conservative and are only willing to take smaller loan risks; some are more pioneering and dare to take larger loan risks.
2. Banks’ attitude towards enterprises: Different banks have different attitudes towards enterprises. Some banks are willing to actively provide advice to companies, help analyze their potential financial problems, have good services, and are willing to issue large amounts of loans to companies with development potential, and help companies tide over difficulties when they encounter difficulties; others Banks offer little advisory services and simply put pressure on companies to repay loans when they run into difficulties.
3. Specialized loan procedures: Some large banks have different specialized departments to handle loans of different types and industries. Enterprises will benefit more from cooperating with these banks with rich professional lending experience.
4. Bank stability: A stable bank can ensure that corporate borrowings will not change midway. A bank's stability depends on its capital size, volatility in deposit levels and deposit structure. Generally speaking, banks with strong capital, small fluctuations in deposit levels, and a large proportion of time deposits have better stability, and vice versa.
What risks exist in commercial bank mortgage loans and how to prevent them
From the perspective of the development of my country's commercial banks, the risks faced by my country's commercial banks are concentrated in the following categories: credit risk, market risk, Operational risk and liquidity risk.
1. Credit risk
Credit risk, also known as default risk, refers to the possibility of losses to the creditor due to the difficulty of the counterparty (debtor) in repaying the contract or unwillingness to perform the debt. Bank credit risk mainly refers to the risk of bank loan losses caused by the debtor's failure to repay the loan in full as scheduled. Credit business is the traditional and main business of banks. Banks are the credit center of society and the concentration of credit risks. Therefore, under the conditions of modern credit economy, the credit risk faced by banks is a relatively prominent risk, and the losses caused by credit risk to banks are also huge.
2. Market risk
Market risk refers to the occurrence of bank's on-balance sheet and off-balance sheet business due to adverse changes in market prices (interest rates, exchange rates, stock prices and commodity prices) Risk of loss. Market risk exists in banks' trading and non-trading activities. The Basel Committee defines market risk as: the risk of losses in on- and off-balance sheet positions due to changes in market prices.
3. Operational risk
Operational risks can be divided into four types according to risk types, namely internal operating processes, human factors, institutional factors and external events. Risk factors can be divided into seven types, including: internal fraud; external fraud; security issues in employee activities and workplaces; security issues in customers, products and business activities; damage to physical assets that maintain the bank's operations; business interruptions and system errors ; Administration, delivery and process management, etc.
4. Liquidity risk
Liquidity risk is one of the main risks faced by commercial banks in my country. As the financial market continues to open up, once liquidity risk increases and becomes a liquidity crisis, it will cause irreversible losses. Compared with credit risk, market risk and operational risk, liquidity risk has more complex and extensive causes and is usually regarded as a comprehensive risk.
Based on loan mortgage risk analysis, risk prevention can be carried out from the following aspects.
① Strict review. Strict examination of collateral, property rights, mortgage contracts and related documents is the fundamental measure to prevent loan mortgage risks.
As for the mortgage itself, the credit officer must review the authenticity of the mortgage rights certificate and verify the authenticity of the mortgage corresponding to the rights certificate (such as house, land use rights, etc.) through on-site inspection; secondly , loan officers must also review the collateral in strict accordance with relevant laws and regulations to see whether the collateral is permitted by relevant laws and regulations and whether it falls within the scope of collateral permitted by the bank.
As for the property rights of the mortgaged property, if it is a property (such as a house), there must be a letter of authorization from the other parties agreeing to the mortgage. If the property is a partnership, there must be a letter of authorization from the other partners. A letter of authorization from the person agreeing to the mortgage. If it is a mortgage of a state-owned enterprise or a collective enterprise, it must have an authorization document that approves the mortgage from the State-owned Assets Supervision and Administration Commission and the Workers' Congress; if it is a mortgage of a limited liability company or a joint-stock company, it must have the approval of the shareholders' meeting or the board of directors according to the company's articles of association. Document authorizing the mortgage.
Credit officers must strictly examine all types of documents for collateral and require all relevant documents to be complete. This requirement must be based on the specific collateral. For example, an imported car mortgage loan requires an operating license, product certificate, purchase and sales contract, customs declaration form, invoice and other procedures.
For mortgage contracts, credit officers must strictly review the relevant conditions of the loan contract, especially its additional effective clauses and the business scope of the borrower's business license. In addition, it is particularly important to note that the validity period of the mortgage contract must cover the validity period of the loan contract.
② Complete registration and filing. According to the "Security Law", mortgages of real estate, trees, aircraft, ships, vehicles, enterprise equipment and other movable properties need to be registered in accordance with the law, and the mortgage contract becomes effective from the date of registration. Therefore, when banks apply for mortgage loans, they must pay special attention to whether the collateral needs to be registered to be effective. In addition, it is necessary to confirm whether the loan contract and guarantee contract need to be notarized according to relevant laws and regulations.
③ Make a good value assessment. Collateral value assessment is the most common means of preventing mortgage risk. To this end, banks must first establish a complete internal management system for collateral value assessment and regularly carry out collateral value assessment. Units that have the conditions and need must also establish a daily mark-to-market system and focus on developing personnel in this area. training work. Secondly, it is necessary to strengthen the contact, understanding and evaluation of asset appraisal companies to prevent the risk of fraud in the outsourcing of collateral value appraisal business. Thirdly, the government department that issues the property title certificate for the mortgaged property cannot be completely ignored. In particular, attention must be paid to analyze whether there is a possibility that the borrower bribes key personnel of the government department to issue false property title certificates or duplicate mortgages.
④ Carry out asset preservation work. Asset preservation work for bank loans involves the disposal of collateral. In the event of a borrower's default, the bank must promptly seize the collateral to protect its rights as the first beneficiary. When disposing of collateral, efforts should be made to coordinate the relationship with relevant stakeholders, fully consider disposal costs, taxes, interest losses after loan default, etc., and prevent the risk of the collateral being sold at a low price.
Extended information
A bank's operational risk management not only involves the procedures and processes within the bank, but also involves the bank's organizational structure, policies and operational risk management processes. For institutions to deal with operational risk, they should have appropriate operational risk policies in place. These policies must first be determined and communicated to personnel throughout the bank. There are several aspects to consider in this process: First, there must be a clear governance structure, and you must understand who should report to it under what circumstances.
In a typical bank case, there should be a separate credit risk management organization, and different business departments responsible for the management of daily business, that is, there are two reporting mechanisms, related to daily operations, to this Report to the business department manager;
As for credit, it must be reported to the relevant credit manager. There is another very important point in the information involved in banks, that is, the people who obtain the information and the details of the information at different levels. For example, what the board of directors needs is a summary of information, so it is impossible to give the same information to everyone.
In addition, information should be flexible and flexible methods of collecting information are needed.