China's Commercial Banks, Real Estate Finance Risk And Its Prevention Research

In recent years, with the furtherance of reform in the housing system, the rapid growth of national economy and speeding-up of the urbanization procedure, real estate industry has become the pillar industry in China's economy. It's expected that with the support of nation's macro-policies the real estate industry will be flourishing and become the mainstay in the national economy in future years. At the same time, loan provided by commercial banks, mostly the state-owned banks, has for all the time been a significant source of money supply to the real estate sector. The co-existing relationship determines that development of real estate industry is bound to accompanied by the expanding of real estate financing.However, real estate industry is of high risks, which inevitable leads to the high risks in financial industry. Under the condition of limited channel to raising money, the capital needed in real estate investment is mostly depended upon the loans of commercial banks, especially on the State-owned banks. Correspondently, the risks of real estate are focused on commercial banks. Worldwide experiences, such as the east and southeast Asian financial turmoil in 1997, has shown us that risks of real estate financing will trigged a disastrous financial crisis, which will greatly hazard the stability of finance even the whole national economy. It's of emergency to take effective actions to ward off the risks of real estate financing and to promote the healthy development of real estate financing.Aiming to provide an effective solution to prevent the commercial banks from the real estate financing risks, this thesis synthetically adopts the theories in economics and finances, integrating the complicated methods of theoretic and practical analysis, systematical and comparative analysis, quantitative and qualitative analysis, by focusing on the theme of real estate risks control, makes a thorough study of China's real estate financial industry with the hope tohelping a long-term steady and healthy development of China's real estate financing.This thesis includes four chapters. The first chapter is preface. The second chapter is aimed to find out the true reasons that caused the risks in real estate financing, so as to take the most effective measures to prevent the risks. The third chapter is international comparison and enlightenment to China. The final chapter is the proposals suggested by the author based on the combination of above-said analysis and our country's practical conditions, from the aspects of both the macro-policies and micro-policies.