Scenario Analysis in Credit Risk Management of Mortgage Backed Loan

摘要

The credit risk of mortgage backed loans is the main risk of commercial banks. Scenario analysis isa "forward-looking" approach, and it can conduct nonlinear dynamic forecast to meet the needs of risk measurement and control of credit risk management of commercial banks. The paper analyzes the applicability ofscenario analysis in credit risk management of mortgage backed loan. It also provides the detail procedure andmethods about credit risk management in order to improve the level of credit risk management of mortgagebacked loan of commercial banks.