Analysis And Innovation Of Real Estate Financial Risk

Real estate finance is a general term of econony activities, Such as currents and credit, With the deepened opening to the world of Chinese economic reform, its transactions are growing and playing most important roles. After having suffered the real estate froth in the early 1990s and the Asian financial crisis, We have the loans for the real estate finance and consuming loans increasing sucessively. Will the situation last soundly?The writer analyzes thoroughly the banking environment both at home and abroad. Firstly, China real estate finance business is highly concentrated in time and place, Secondly, high ratio of the non-performing loans, which exchanged for cash arrives to less than 30 percent. Thirdly, business banking with poor inner environment such as single property ill lay-out of the company and the unqualified clerks or managers to prevent risks. Fourthly, the unstable outer, environment is liable to lead to non- stability. Fifthly, unsound internal governance mechanism in loan assessment Sixthly, the ill effect to take precautions against financial risks due to the imperfect of macro economy control, In order to prevent the real estate financial risks the writer puts forward that land management system should be further reformed to promote the development in local business; property system should be reformed at the four government banking and Financial supervision should be strengthened and risk rating-should be perfect.