Study Of The Legal Regulation Of Over-expansion Of Real Estate Banking And Financial Capital

Real estate industry is one of the pillar industries in our country, and its healthy development plays an important role in the national economy development. Real estate industry is capital-intensive, and therefore to effectively solve the financing problem of the industry is the important condition to promote its healthy development. The development of real estate is inseparable from the support of financial industry, and they rely on each other and influence each other as well. With the rapid development of market economy, the degree that banking and financial institutions engaged in real estate development constantly increases, firstly banking and financial to support self-built housing, then financing to developers, and now making the residents receive a mortgage loan to buy a house. It can be said that in the current situation, the healthy development of real estate is inseparable from real estate finance, especially the support of banking and financial capital. According to statistics, among the sources of China's real estate industry, banking and financial capital accounted for more than 80%, and the balance of real estate loans is 7.8% of the proportion of that of commercial bank loans.However, along with the rapid expansion of China's real estate banking and financial capital, the price of real estate is soaring. Fund provided by banks is a determining factor of the real estate prices, and excessive expansion of banking and financial capital is the significant factor for the prices of real estate rise and then bubble formation. When the real estate bubble runs up, outwardly it's flourishing and all participants benefit from it, but the huge price paid by this kind of "high-bubble" will cause great instability to macroeconomic developments. Because of the large amount of real estate transactions, when the bubble high, the land agents will make excessive expansion of loans for real estate financing, which contains huge financial risks. If real estate prices fall, making the cost of the investment not been taken back, it will affect financial institutions. Then, it will have a devastating impact on real estate, financial system and social economy, and may even trigger a financial crisis. Therefore, it's particularly important to study the risk brought about by the excessive expansion of real estate capital.In the countries whose real estate development is comparatively mature, the main capital source of enterprises development is not banking and financing capital, but through the forms of stock, bond, real estate investment trust and real estate industry fund. This is also the successful experience abroad to prevent financial risks and real estate bubble generated by single financing form. However, China's current weakness is that the approach of real estate fund overly depends on banking and financial capital. To learn from foreign countries' advanced mode of financing and the management experience of real estate market, we can provide China's real estate enterprises, investors with reliable funding cycle security, and promote real estate business specialization and the rational allocation of resources, and it's conducive to form China's real estate market capital, rich varieties of Chinese residents investment, and reduce financial risks.This paper starts with the special relevance of real estate risks and finance risks, in the situation of the real estate in the excessive concentration in the banking financial capital, with comprehensive application of law, finance and other relevant theoretical knowledge, using combining methods of theoretical analysis and empirical analysis, qualitative analysis and quantitative analysis, systems analysis and comparison analysis, to discuss the causes, traits and manifestations of the real estate industry in an excessive concentration in the banking and financial capital, and by the summary of experience and lesson from United States, Japan, and other countries' real estate finance market risk and credit risk prevention, according to China's actual conditions, from the perspective of laws and regulations, to put forward to several policy proposals for resolving the finance capital risk and real estate risk in the real estate industry caused by the excessive expansion of the financial capital.The full text is divided into four parts. The first part mainly starts with the basic concepts of real estate industry, and then systemically expounds the view that the characteristics of real estate industry determine the features of financing which are different from other financings. At the same time, it further proves the correlation between real estate industry and financial capital, to put forward the topic that the over-expansion of financial capital in the real estate industry. The second part analyses the reason, performance, and resulted real estate risks and financial risks of the over-expansion of financial capital, and bring forward the problems this paper is to solve. The third part combines the advanced experience from the United States, Japan, and other countries in the area of real estate finance, to provide the thought that we can use to solve the over-expansion of banking and financial capital in China's real estate. The fourth part is from the legislation, government's macroeconomic regulation and control, financial institutions'self-supervision, social credit system construction, and the selecting of financing forms, these five aspects, to systemically introduce the countermeasures and steps to deal with the over-expansion banking and financial capital problem of present real estate industry.