Real Estate Development Loans Risks And Countermeasures

The development of real estate features the high profits and high risks. And the financing source of the development of real estate is banking credit. The statistic of the China People's Bank shows that the credit of the development of real estate in China has high risks. The paper analyzes the cause of the risks in the credit of the development of real estate from the perspective of the information economics. And the paper reckons the major cause of the risks in the credit of the development of real estate is the asymmetric information within the banks, and hereby the adverse selection and the moral hazard. The major route to keep away from the risks is to increase the degree of information symmetry. Meanwhile the creation of the financing tools is the fundamental route to protect from the risks in the credit of the development of real estate. The paper makes the initial study of the securitization of the credit of the development of real estate.The paper has four chapters. The Chapter One gives the status quo and the risks of the credit of the development of real estate; The Chapter Two analyzes the cause of the risks in the credit of the development of real estate, and studies the adverse selection, the moral hazard and the real factors in the credit of the development of real estate in China; The Chapter Three gives the route to protect from the risks in the credit of the development of real estate is to increase the degree of information symmetry, and meanwhile in the long run to establish a credit risks preventing system is necessary; The Chapter Four discusses the innovation of the financing mode of the development of real estate and makes the initial study of the stock form of the credit of the development of real estate.Because there is few literatures about the risks of the credit of the development of real estate domestically, and the most achievements of studying credit of real estate with the theory of information economics and the assets securitization are primary. The study of the paper is a meaningful attempt.